Eighty-eight percent of CEOs of new companies said a strong brand can help a venture capital firm increase deal flow by attracting entrepreneurs, according to a survey on the role of branding in the venture capital industry by the National Venture Capital Association and marketing firms DeSantis Breindel and Rooney & Associates. Some 66% of startup CEOs and 68% of venture capital executives surveyed consider word of mouth among entrepreneurs the most effective communication channel influencing perception of a venture capital firm's brand.
Twenty-one percent of CEOs and 47% of venture capital firm executives stated word of mouth among limited partners as the most effective in communicating venture capital branding, while 36% of CEOs and 47% venture capital executives stated word of mouth among venture capital firms to be most effective.
CEOs considered views of valued third parties such as accountants lawyers and fellow CEOs more than anything else, said Heather R. Hunter, director, marketing communications at Philadelphia-based venture capital firm Safeguard Scientifics, and who was part of a committee that spearheaded the survey.
The survey was conducted in January; some 158 CEOs and executives at 216 venture capital firms responded.