Venture Capital in the Twitter Age

twitter logoGone are the days when venture capitalists avoided growing their brand through self-promotion. Today most VC’s are actively engaging in social networks – like Twitter – in order to spread the word and increase awareness about their investments.

The ‘tweeting’ trend is only going to grow with time, as many top Venture Capitalist firms are building marketing/promotion teams (or hiring PR agencies) to help them leverage Twitter in the best possible way. Venture Capitalists who are failing to use Twitter to foster new relationships and grow their brand are missing out on a big opportunity.

How Are Venture Capitalists Using Twitter?

#1: Creating Brand Awareness:

It doesn’t come as a surprise but most Twitter-using venture capitalists such as Rick Bolander (you can follow Follow Rick Bolander on Twitter: @rickbolander) are using this micro-blogging platform fundamentally for branding activity. This is exactly why you find VC’s devoting a lot of their time/energy to becoming more active on Twitter.

#2: Building Effective Relationships:

Venture Capitalists on Twitter are using the social media site to engage with their followers and build long-lasting relationships. Studies show that more than 30-percent of the tweets sent by Venture Capitalists were retweeting mentions, corresponding with their followers, or sharing relevant quotes.

#3: Showcasing Leadership/Innovation:

A good number of venture capitalists broadcast tweets showcasing leadership and innovation by sharing articles/bylines from their portfolio companies.

#4: Sharing Company News:

Let’s face it, venture capitalists are, at the end of the day, running a business; which is why they are regularly sharing company news using social platforms like Twitter.

Best Twitter Practices of Successful Venture Capitalists

1) First and foremost, they don’t tend to send random tweets. Instead, they have a real strategic approach where they consistently tweet on a targeted topic in order to make their Twitter stream more relevant and predictable.

2) They make use of hashtags (#) to organize/categorize their tweets, making them a lot more easy to search.

3) They use a conversational/personal style when writing their tweets. This not only makes their tweets interesting, but more approachable to interested entrepreneurs and fellow venture capitalists. They look more human.

Conclusion

Twitter is turning out to be one of the most compelling and effective forms of communicating in today’s fast-paced world. And many Venture Capitalists understand this and continue to change/evolve by meeting the regular needs of aspiring entrepreneurs and their portfolio companies.

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Comments

  1. Twitter seems to be a fairly strong promotion tool, even for blogs. That actually surprised me quite a bit when I discovered that!

  2. @ Jose – It sure is. It is so easy as well to find very targeted demographic on twitter to market to and engage. Thanks for stopping by!!

  3. Incredible how much impact it has, as you point out, Christopher. Would be interested to know about venture capital techniques of promotion across other social media platforms.

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