Better put your best foot forward on Twitter and Facebook. An investor might be watching.
A growing group of venture capitalists are taking social media into consideration before they decide to pour millions of dollars into a startup. They're checking how many online followers a company has, and how fast the numbers are growing. They're looking at the unfiltered consumer feedback companies get and how they respond. And they're assessing how creative startups are about managing marketing campaigns and leveraging their presence.
An impressive social-media effort, investors say, can show that a brand has a unique and appealing voice—and that it knows how to grab customers. And it can be the tipping point in the decision to back a startup.
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Via Marc Kneepkens