By Jesse Swash, Co-founder, Design by Structure

A survey by a US B2B agency revealed that ‘77% of VCs believe branding significantly impacts their perception of a startup's potential and is a key factor in funding decisions’. Our experience as a UK branding agency would suggest the same: Brand is a core investment asset.

We would go further and say that, of the firms we worked with that sought Venture Capital from inception or were successful in Series B or C raise, 100% of them commenced and concluded work on their brands before seeking raise of significant capital.

"Brand is a core investment asset"

We know investors have a honed set of criteria that drive their selections. Such as, is it in the right sector. Is it a great idea. Has it been thought through. Does the leadership and founder look credible. Can we work together?

It’s a mix of factual and gut feeling, de-risked as much as possible by questions, research, and more questions. It’s IQ and EQ. Brand joins those two worlds together. Brand makes the difference.

The New Reality of Venture Capital (VC) Expectations

The word 'brand' is widely misused, it is more than a logo and a choice of font and colour. Brand is what you say, how you say it, who you’re saying it to. It's about aligning with the product market fit. It's about looking just right for the audiences you need on your growth journey to build that unicorn and become an investor yourself.
Great product no-one can understand… That’s not going to work. Selling ease of use and timesaving but only show product shots and no-one using it. Nope. That’s not going to work either. Venture Capital players, the senior teams who make the decisions understand this. They’ve crafted their own brands to stand out and attract the right deal flow. And they expect yours to be the same.

Brand has moved from a ‘nice to have’, ‘we’ll sort it out later’ to a core success pillar. Connecting the IQ of the business, the great product, to the EQ of the business, ‘the sell’ and the halo of ease-of-use and attractiveness of the offer. Brand makes that happen.

Steve Millard from Notion Capital, speaking on our podcast recently said, “There are specific triggers and criteria VCs look for in potential investments, particularly those in the build or scaling stages. It’s important to understand and communicate the core truth of the brand—the journey, mission, and promise from the very beginning.” 

Why Brand Clarity Matters to Investors

The brand has value for the business and now plays a fundamental part in its success. And brand sits across the whole lifecycle. Why do you exist. What problem are solving. Who do you need to reach. What do you tell them. How do you tell your story. What impression do you make. How are you remembered? What are the tools you use in the sales cycle. And how do you become talked about and must have. Brand, in short. Makes you buyable.

Working with the right branding agency will help shape the value you bring. And once that is clear, get everyone saying the same thing about your business. Complete clarity of offer and clarity of direction. That is when the VC’s get excited.

Millard encourages clarity, “Something I say to founders is, when you're pitching for investment, what do you want the people in the room to say about your business to their partners… you better make sure that they hear key messages as opposed to the noise that gets in the way.”

If everyone is focused and aligned on the direction. If everyone is cutting through to the core value add that hockey stick exponential growth the investor craves suddenly looks credible and possible. Brand does that. Be clear. Be aligned. And everything will fall into place.

The Business Case for Early Brand Development 

We have done some research in this area, speaking to clients at different stages of fundraising and growth, and the universal view is a wish they had focused on their brand earlier. Particularly when they face the challenges of securing funding.

Discussing the power of brand in business on our podcast, Richard Valtr, Founder of Mews (which recently became a unicorn) said, "People love the idea of joining a brand that isn't just a throwaway but has a deeper ethos—a story they can tell about why they're aligned with it. The deeper your narrative, the more loyalty you build, because people want to engage with something meaningful, thoughtful, and of quality. That's why, even when price is a factor, there's immense value in being able to explain that alignment."

Brand done properly, right through the value add and stretching into the go-to-market assets, adds to a company’s overall monetary value too. So, do it early, do it right and focus on commercial challenges with that part taken care of and supporting your plans. Re-visit your brand at significant growth moments as you head (yes, we are optimists) to IPO.

VCs, like all good businesses, evolve too and their expectations of what good and great look like in a way a company goes to market have changed as well. Brand now matters as much as the product.

Position your brand right. Attract customers and talent. And attract capital from the VC you want. If you’re ambitious. If success matters. If raising from VCs matters. Brand matters.

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This article first appeared in Design Week - “Brand makes you buyable – just ask investors”.