Content marketing is mostly associated with forward thinking digital or technology companies, in various online spaces. However, with the rapid change of pace in global marketing, more and more types of companies are looking to content marketing techniques to reach people, not the least of which are Venture Capital firms.

In a recent Forbes article by Kevin Cain (Director of Content Strategy at OpenView Venture Partners), he listed what he sees as the four reasons why Venture Capital Firms should be doing content marketing.

Sourced from HubSpot Press Room

1. Growing interest in content marketing investments.

In the past year, some VCs have pumped money into the likes of HubSpot, Kapost, Skyword, and many of the other software-as-a-service (SaaS) businesses designed to enable content marketers. How better to get exposed to the value that content marketing can bring to your own operation than by conducting due diligence on, and ultimately investing in, some of its best service providers

Sourced from Creative Commons 

2. The growing need for differentiation.

In a challenging environment, VCs are looking for ways to stand out and build their brands, two objectives that well-executed content marketing programs can help achieve. Doing so can pay dividends as firms look to attract limited partners and high-caliber portfolio companies. It also helps shorten sales cycles by giving founders a way to assess whether or not a VC is a good fit for them long before ever picking up the phone.

3. The move toward value add.

An increasing number of venture capital firms are doing a lot more for their portfolio companies than simply writing a check. VCs are often expected to bring an array of capabilities and expertise to their portfolio companies, including helping them recruit top talent, providing sales and marketing support, creating content for them, and these days, teaching them how to become effective content marketers.

4. Exits are taking longer.

The reality is that it often takes more time to reach an exit today than it did just a few years ago. By encouraging their portfolio companies to create content, some VCs are giving their portfolio companies a viable way to generate and nurture leads, which will ultimately drive the kind of revenue necessary to bring about an IPO or acquisition.

You can find the full article ‘The Rise of VC Content Marketing’ here:

Aside from urging VCs to use content marketing, the article also listed a number of large US VCs who have started to implement a content marketing strategy, including Andreessen Horowitz, Sequoia Capital, First Round Capital and Battery Ventures. Not to mention Open View Partners themselves who have pioneered such a strategy to great success for a number of years.

The fact there are at least four very good reasons for VCs to adopt a content marketing strategy and that a number of prominent US VCs have now started to implement it suggest that we can expect to see a similar move into content from the leading UK venture capital firms. The growth of London as a tech start up hub and the clustering of US SaaS firms’ European headquarters in Dublin will provide a stimulus to UK VCs to engage with them beyond traditional networking and PR.

It is surprising therefore that so few UK VCs have adopted content marketing as a strategy. Many have websites and social media posts but few have developed content hubs such as Sequoia Capital’s ‘Grove’ or Open View’s ‘Labs’. Both are portals where founders and entrepreneurs can find practical advice on topics ranging from product pricing to how to prepare a board deck.

Given the differences between the US and the UK markets in terms of access to capital for start-ups and growth stage SaaS businesses there is a market opportunity for a forward-leaning UK VC to stand out from the crowd and get to the best opportunities before they even meet them.

I would love to hear about your experience if you are a SAAS company with experience of a UK VC which is executing a good content marketing strategy or indeed if you are a VC who is doing this or thinking about it.

Hubspot are one of they most successful content marketing powerhouses. For any Venture Capitalist looking to embark on an inbound marketing journey, finding out how Hubspot did it is a great place to start. You can get your free copy of “Go Big or Go Home: How HubSpot Did it” by clicking on the banner below.

Featured image sourced through Creative Commons – Original image from Alley Watch. Click all other images for source URLs.