In the competitive but lucrative crypto market, the dream of many investors is to secure funding at some point. Funding can swiftly change the fortunes of any crypto project, as it means that the business can expand, develop new products, and even pursue new marketing avenues. There is also the reputational advantage of being able to say that reputable venture capital firms invested money, sometimes millions, in your business.
But before you rush off to celebrate, you will need to put out a crypto funding announcement. Not only is this announcement a major requirement as per industry standards, but it can also generate massive PR benefits for your business if done right.
What Is a Crypto Funding Announcement Press Release?
A crypto funding announcement press release is essentially a press release that announces the details of a recent funding to the public. Not only does it tell the reader that funds have been raised, but, using the 5Ws, it explains:
Who: It notes the company that has gotten funding and which company/companies have contributed to the funding.
Where: It notes where the funding round took place and/or where each company involved is based.
When: Besides the date of the PR being published, a crypto funding announcement press release also states when the funding round closed.
What: There are different types and rounds of funding, and these press releases have to specify what type of funding was done.
Why: No company raises funds just for the sake of it. The crypto funding announcement press release has to explain what the funding is for.
What Makes Crypto Funding PR Different?
Now, while the elements we mentioned earlier apply to virtually all funding announcements, a crypto funding announcement press release will have to provide specific context that others may not. As they are dealing with a very specific industry and audience, the following have to be included.
1. Tokenomics
Crypto projects live and die by their tokenomics, and a major factor for this is their funding. So, not only does the company have to state how much funding they have received, but also the state of their tokenomics. Do they operate a deflationary or inflationary model? Is token vesting in place?
Even if these details have been explained before, they have to be stated in the crypto funding announcement press release. They also have to explain if and how this new investment influx will impact the ecosystem’s tokenomics.
2. Protocol Development
While supporters of a crypto business might be happy to hear about their getting funding, they will also want to know what changes are coming to the protocol. After all, many crypto businesses seek funding so that they can further develop their native protocols and add new features, improve speed, etc.
While readers might not expect highly technical terms or in-depth explanations, a crypto business simply explaining that they will make improvements to their protocol helps to contextualize the funding beyond them getting money.
3. Exchange Relationships
Crypto tokens of a certain size almost always make their way to exchanges, and this could be something to include in a crypto funding announcement. Readers will be happy to know if listing on CEXs or DEXs is in the near future or in the works.
This is doubly true if the token is already listed on exchanges but will be expanding its reach.
4. DAO Governance
A concern that many DAO users have when external funding comes into the picture is whether community control will be removed or watered down over time.
In fact, that is a core reason why they would read a crypto funding announcement press release in the first place. As such, you have to either reassure them that this will not happen or be transparent about the changes ahead.
5. Community Growth
Crypto businesses should state in their funding press releases if they plan to grow the community and, if so, how. Are these funds going to be used for marketing? Will you expand your product range for more reach? These are relevant details to include in a crypto funding announcement.
6. Ecosystem Incentives
Because crypto businesses are especially concerned with community, announcements of them receiving funding should mention them. Specifically, there should be a mention of what benefits will be given to the existing community and which will be used to bring in new members.
7. Security and Audits
While a ‘traditional’ business would mainly focus on just internal, financial, and general audits, much of which would be kept private, crypto companies operate under different rules of transparency. A funding announcement might also touch on how the network itself is being audited and how activities on the blockchain can be viewed by the public.
8. Regulatory Considerations
The crypto sector has had issues with regulation in the past, and a crypto funding announcement is an opportunity to reaffirm customer trust. The release can mention that the funders are regulated, publicly-traded, or reputable companies. It can also mention that the fundraising was done in accordance with current regulations.
9. Investor Credibility
Besides it being standard practice to name investors, having reputable investors attached to the funding round further boosts public trust, especially among those who are less familiar with crypto.
Why Funding Announcements Matter in Crypto PR
It cannot be overstated how much benefit there is in putting out a crypto funding announcement. They play a huge role in establishing a business’s reputation and developing a positive relationship with the public.
Legal Requirement: When money is invested in a business via funding, there is often a legal requirement to publicly disclose this. So putting out a crypto funding announcement press release is them adhering to the law.
Positive Public Perception: When people hear that a business has received millions in funding from reputable companies, they have a more positive perception of it. After all, if this crypto project could raise this much, they are likely worthwhile.
Brand Credibility by Association: If the funding round includes notable names both within and outside Web3, your company can enjoy a stronger reputation by association. The way they see it, a top venture capital firm or tech giant wouldn’t invest in a crappy company, and so, you get to borrow some of their credibility.
Contextualization: The press release, if well done, can be a chance to further explain your business model to readers and pique their interest.
Publicity and SEO Benefits: A crypto funding announcement is also a way to generate publicity, especially if it is widely circulated. If it adheres to the principles of SEO, it can also drive traffic to your various web pages.
Decide What Type of Funding Announcement You’re Writing
To create an effective crypto funding announcement, you have to first define what type of funding you are receiving. There are several types of funding a business can enjoy, some of which are as follows:
Pre-Seed or Seed Funding
Pre-Seed and Seed Funding are given to early-stage projects to allow them to develop their products and begin market penetration.
Series A or Later Funding
This is given to businesses that have already developed their initial product and shown some promise in the market.
Strategic Investment
Strategic investments involve one business investing in another to gain specific benefits besides money, such as access to innovative technology, greater market share, and so on.
Ecosystem Grant
Quite common in Web3, this sees an ecosystem give money to a promising project to aid in its development. It is worth noting that they do not gain any ownership in the project through their investment.
Token-Related Funding
This type of fundraising is done by selling tokens related to the project, whether through a presale, an ICO, an IEO, or similar. The funds raised are typically used for ecosystem development.
Tips for Crypto Funding Announcement PRs
Want to write the most professional and effective crypto funding announcement PRs? Here are some tips to keep in mind:
1. Start With a Clear, Factual Headline
The headline for the press release should the most important details, such as the companies involved, what type of fundraising was done, and how much was raised.
2. Include the Most Important Funding Details
The body of the text should not miss any of the core details. Ensure the press release is written in the correct format and provides all critical information.
3. Explain the Use of Funds Clearly
Readers should be able to tell if the funds are for product development, marketing, or anything else.
4. Add Investor Context Without Overhyping
Bring the project to life, but don’t be hyperbolic, as this harms credibility.
5. Use Quotes That Add Substance
Quotes in press releases can inject life into any announcement, and these are no different.
6. Mention Traction, But Only If It’s Verifiable
As much as you want to communicate your project’s potential to customers, only make claims that you can back up with facts
7. Be Careful With Token Language
Only state correct information and don’t aggressively push readers to buy the token.
8. Keep the Company Description Simple
While you should give context around the businesses involved, don’t make the mistake of stuffing the press release with tons of information. Instead, explain what they do in a few sentences or less.
9. Add a Simple Media Contact Section
As with all press releases, there should be a section with your media links and contact information
Common Mistakes to Avoid
Even with the best intentions, many businesses still make mistakes when announcing crypto fundraising.
Some common mistakes include:
Writing weak headlines that exclude the facts
Incorrect or unverified information within the text
Not giving proper context
Turning the release into an advertisement rather than an announcement
Not using a crypto press release distribution service
How BTCWire Helps Crypto Companies Announce Funding
At BTCWire, we’ve dealt with crypto press releases of all types, including crypto funding announcements. We know what to include to stay in line with regulations while also retaining audience interest. We also know the best channels to distribute these releases on to ensure maximum exposure to the right audience. So, whether you have just raised funds or are looking to do so, reach out to us to discuss your needs or check out our packages page.