No matter what stage your company is in, here's what you need to know about navigating a communications strategy. Photo via Getty Images

The significance of effective communication and its contribution to a company’s success are points regularly stressed by conference panelists and forum speakers. Yet for many founders it’s advice that fuels frustration for how to make communications a priority with a lack of understanding of the practice.

This article combines insights from investors, customers, advisers, and founders, with actionable recommendations that benefit both startups and growth stage leaders who are scaling the impact of their companies.

Why marketing communications is important

Marketing communications combines the use of messages and a broad spectrum of tools to communicate with target audiences in attracting customers, cultivating relationships, acquiring funding, increasing visibility, and growing influence.

To define marketing communications in singular terms limits its impact. “For some, communications is simply a pretty graphic,” says Adam Lipman, managing partner of Ecliptic Capital, “and they don’t think about the importance of communications that speak to the needs of their key audiences in language that will resonate with them.”

It can be tempting to jump straight to producing tools that you can touch, hear and see, but applying thoughtful strategies first has everything to do with how successful those tools will be.

A dangerous misconception

Regardless of how innovative your device, therapeutic or service, there is always competition, including the option of customers doing nothing. “We call it the good enough problem,” says Lipman. “If what’s currently being done is considered good enough, what is the incentive to improve or change it with your idea?”

Comparison is a common method for comprehending a disruptor’s unprecedented concept. Your wearable device that does something no one else’s does will, at the very least, be categorized and compared to other wearables. Your innovative concept for improving cardiovascular patient outcomes will be compared within the broad category of cardiovascular care. To believe there’s no competition to challenge your success, regardless of how unique, is a false sense of security that requires proactive messaging.

“If you don’t define your brand, someone else is going to do it for you, and it may not be what you want,” warns Tatiana Fofanova, co-founder and CEO of Koda Health.

The analogy we use when formulating messaging for our clients is to define their “seat at the table” so that no matter who or how many competitors are seated alongside them, the advantage their solution offers and the beneficial role they fill within the ecosystem is very clear.

Strategically connecting the dots

Distinguishing your company from its competition and motivating action on the part of investors or customers requires communication strategies that connect all the dots.

“Many entrepreneurs think their technology will sell itself,” says Michelle Stansbury, vice president of innovation and IT applications for Houston Methodist. “But for me to understand what we gain by utilizing their product, I want to know what problem are they solving. Does their product increase efficiencies, improve patient satisfaction, or answer a financial problem? Answering these questions is fundamental.”

In addition to messaging that clearly defines how your company is uniquely capable of delivering valuable solutions, it’s important to apply strategies for speaking your audience’s language and identifying the pain points you are capable of relieving. It also requires considering the perspective and experience of an audience’s different members. For instance, if presenting to an investor who is also a neurologist, sharing scientific data will be appreciated. For others, the why and how of what you offer may be better told through story.

The homework you do to fully understand your audience’s needs will not only produce beneficial insights but also demonstrate a level of commitment that can impress influencers and potential funders.

“I’m drawn to founders who want to walk in their customer’s shoes. They are generally deeply empathetic because they've spent time literally walking the halls with them and sat in the chairs next to them,” says John “JR” Reale, venture lead for the Texas Medical Center Venture Fund. “It’s very endearing to see a founder who wants to understand and continue to learn from who they want to serve.”

Actionable advice

Just as marketing communications is defined by multiple components, there are several actionable strategies for getting past the understanding phase. Here are three key recommendations to implement, whether a startup with limited resources or a company experiencing accelerated growth.

As a startup

  • Develop brand messaging that distinguishes your solutions from the competition and captures the compelling purpose and passion of your company’s mission.
  • Establish a working relationship with professional communicators. Though your budget is small, it’s a great way to develop trust and familiarity within the parameters of a single project for when greater resources allow expanded assistance in the future.
  • Identify each of your key audiences, including strategic partners, community influencers, and end users, as well as potential investors and other funding sources. The list may be daunting, so rank contacts in each category and unleash your entrepreneurial curiosity to research their needs and priorities.

The growth stage company

  • Invest in comprehensive communication consultation to elevate your startup marketing communications to the 2.0 level of expected sophistication. This is when the working relationship seeds you planted with a professional communicator really pays off. Trust has been established and there is a fundamental understanding for who you are and why it matters.
  • Just as your business plan provides vital direction, a strategic communications plan functions as an essential blueprint for achieving your goals, including connecting with target audiences, increasing visibility, marketing your company’s services or products, and strengthening your bottom line. Strategies should be tailored to your organization’s specific needs and identify the tools necessary for achieving success.
  • Prioritize and produce marketing tools identified in your plan that promote the company’s impact and build on the brand reputation it has achieved.

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Kelli Newman is president of the Houston-based communication strategies firm, Newman & Newman Inc., where she leads a talented team of marketing professionals advancing the success of their purpose-driven clients.

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Houston quantum energy chip startup emerges from stealth with $12M round

seed funding

Houston-based Casimir has emerged from stealth with a $12 million seed round to commercialize its quantum energy chip.

The round was led by Austin-based Scout Ventures. Lavrock Ventures, Cottonwood Technology, Capital Factory, American Deep Tech, and Tim Draper of Draper Associates also participated in the round. The oversubscribed round exceeded the company’s original $8 million target, according to a news release.

Casimir’s semiconductor chips can generate power from quantum vacuum fields without the need for batteries or charging. The company plans to commercialize its first-generation MicroSparc chip by 2028.

The MicroSparc chip measures 5 millimeters by 5 millimeters and is designed to produce 1.5 volts at 25 microamps, comparable to a small rechargeable battery, without degradation and no replacement cycle.

“Casimir represents exactly the kind of breakthrough dual-use technology Scout Ventures was built to back,” Brad Harrison, founder and managing partner at Scout Ventures, said in the release. “This is based on 100 years of science and we’re finally approaching a commercial product … We’re proud to lead this round and support Casimir’s journey from applied science to deployed technology.”

Casimir says it aims to scale its technology across the ”full power spectrum,” including large-scale energy systems that can power homes, commercial infrastructures and electric vehicles.

Casimir's scientific work has been supported by DARPA-funded nanofabrication research and its technology was incubated at the Limitless Space Institute (LSI). LSI is a nonprofit that works to innovate interstellar travel and was founded by Kam Ghaffarian. Technology investor and serial entrepreneur Ghaffarian has been behind companies like X-energy, Intuitive Machines, Axiom Space and Quantum Space.

Harold “Sonny” White, founder and CEO of Casimir, believes the technology can power devices for years without replacements.

“Millions of devices will operate for years without a battery ever needing to be replaced or recharged because we have engineered a customized Casimir cavity into hardware capable of producing persistent electrical power,” White added in the release. “I spent nearly two decades at NASA studying how we power humanity’s future. That work led me to the Casimir effect and the quantum vacuum, where new tools have allowed us to build on a century of scientific knowledge and bring abundant power to the world.”

Houston-based Fervo Energy bumps up IPO target to $1.82 billion

IPO update

Houston-based geothermal power company Fervo Energy is now eyeing an IPO that would raise $1.75 billion to $1.82 billion, up from the previous target of $1.33 billion.

In paperwork filed Monday, May 11 with the U.S. Securities and Exchange Commission, Fervo says it plans to sell 70 million shares of Class A common stock at $25 to $26 per share.

In addition, Fervo expects to grant underwriters 30-day options to buy up to 8.33 million additional shares of Class A common stock. This could raise nearly $200 million.

When it announced the IPO on May 4, Fervo aimed to sell 55.56 million shares at $21 to $24 per share, which would have raised $1.17 billion to $1.33 billion. The initial valuation target was $6.5 billion.

A date for the IPO hasn’t been scheduled. Fervo’s stock will be listed on Nasdaq under the ticker symbol FRVO.

Fervo, founded in 2017, has attracted about $1.5 billion in funding from investors such as Bill Gates-founded Breakthrough Energy Ventures, Google, Mitsubishi Heavy Industries, Devon Energy (which is moving its headquarters to Houston), Tesla co-founder JB Straubel, CalSTRS, Liberty Mutual Investments, AllianceBernstein, JPMorgan, Bank of America and Sumitomo Mitsui Trust Bank.

Fervo’s marquee project is Cape Station in Beaver County, Utah, the world’s largest EGS (enhanced geothermal system) project. The first phase will deliver 100 megawatts of baseload clean power, with the second phase adding another 400 megawatts. The site can accommodate 2 gigawatts of geothermal energy. Fervo holds more than 595,000 leased acres for potential expansion.

Cape Station has secured power purchase agreements for the entire 500-megawatt capacity. Customers include Houston-based Shell Energy North America and Southern California Edison.

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This article originally appeared on our sister site, EnergyCapitalHTX.com.