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Startup Funding Announcement

A startup funding announcement kit with headline options, a press release with quotes and boilerplate, an email to customers and a three-week launch plan.

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About this document

A startup funding announcement is the public news that a company has raised money, usually shared as a blog post, a press release and emails to customers and partners. This kit keeps all three in one document so the numbers and quotes match.

Use the startup funding announcement after the round has closed and the money is in the bank. Write it for customers and future hires rather than other founders: say what the money lets you do for them. To share the news privately with current backers first, use the startup investor update. Confirm every name, quote and number with the person it belongs to before anything goes out.

How to fill it in

  1. Pick the date and story. Three weeks ahead, agree the announcement date, the amount, the lead investor and the main story with your lead investor. Fill in the launch plan owners.
  2. Draft the release and quotes. Choose a headline, then fill in the opening paragraph, the problem, a customer result and how you will use the money. Get both quotes approved in writing.
  3. Write the customer email. Tell customers what changes for them and what stays the same. Make no promise about features or dates you cannot keep.
  4. Tell insiders, then publish. The day before, tell your team, customers and current investors. On launch day, publish the post, share it and send the customer email.
Startup Funding Announcement

[Company] Raises [$ amount] to [What It Will Do]

Funding announcement · For your blog, a press release, and the email to customers · Embargoed until [date and time, time zone]


Start planning at least three weeks before the date you want to announce. Confirm every name, quote and number with the person it belongs to before anything goes out. Announce only a round that has closed and been paid in.

Headline options

  • [Company] raises [$] to [outcome for customers]

  • [Company], [what it does], raises [$] led by [lead investor]

Announcement

[City], [date] · [Company], [a one-line description of what it does and for whom], today announced [$ amount] in [seed / Series A] funding led by [lead investor], with participation from [other investors].

[The problem, in two or three sentences, with a number that shows its size. Write it for a customer, not an investor.]

[What the company does about it, and one concrete example of a customer result. Only name a customer who has agreed to be named.]

"[Founder quote: why you started the company and what the money makes possible. One or two sentences that sound like you.]" said [name], [title] of [Company].

"[Investor quote: why they invested.]" said [name], [title] at [firm].

The company will use the funding to [two or three specific uses, such as hiring engineers, launching in a new market, or building a named product]. [Company] is hiring [roles]; see [careers page link].

About [Company]

[Two or three sentences: what you do, for whom, founded when and where, and your website.]

Media contact

[Name] · [email] · [phone]

Email to customers

Subject: [Company] raised new funding. Here is what it means for you.

Hi [first name],

Today we announced [$ amount] in funding led by [lead investor]. We wanted you to hear it from us first.

[What changes for customers, in two or three sentences: the product you will build, the support you will add, or the market you will serve next. Make no promise you cannot keep.]

Nothing changes about your account, pricing or contacts. [Optional: name the person they can reach with questions.]

Thank you for [a specific thing this customer did, such as early feedback].

[Your name], [Title]

Launch plan

When

What

Owner

[3 weeks before]

Agree the date, the story and the quotes with your lead investor

[Name]

[2 weeks before]

Offer the story to one or two reporters under embargo

[Name]

[Day before]

Tell your team, customers and current investors first

[Name]

[Launch day]

Publish the post, share it on social media, and send the customer email

[Name]

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Frequently asked questions

When should a startup announce its funding?

After the round has closed and the money has arrived, never while terms are still being signed. Many startups wait until they have news to pair with it, such as a launch or a hiring push, and plan the announcement two to three weeks ahead.

What is a press embargo?

A press embargo is an agreement that a reporter can see a story early but will not publish before a set date and time. It gives the reporter time to write a fuller piece. Put the embargo time and time zone at the top of anything you send.

Do you have to disclose your valuation in a funding announcement?

No. Most startups share the amount raised, the round name and the lead investor, and leave out the valuation. Agree with your lead investor in advance on which numbers to share, and give every reporter the same ones.