European tech and VC has had a couple of challenging years following the investment booms of 2021 and 2022. As the industry continues the recovery that began last year, there is a growing shift in the way that the most successful European VCs are communicating with their audiences. With increasing competition across the ecosystem, VC brand and comms functions are having to rapidly develop to keep up. For many, this will mean realising that they can no longer get by on their name alone; a more proactive approach is required.
Standing out in a complex landscape
There is cautious optimism in the VC industry following a year of global elections in which nearly half of the world’s population voted. 2025 is set to be a year of recalibration and a return to sustainable growth. Although the market has begun to pick up pace, political change means that uncertainty and instability are still rife.
As a result of this instability, there has been an increase in sector-specific and targeted funds as the market cuts down on the ‘spray-and-pray’ bets that characterised the AI rush of the last couple of years. This return to strategic and ‘thoughtful’ investing is increasing the competition for the best deals, leading VCs to consider what they need to change in order to stand out.
Define what you stand for as a venture capital firm
The first step in any communications challenge is to work out what sets you apart. As with any other industry, VCs need to give LPs and founders a reason why they should pick them over any number of their peers. Some are turning to productisation, adding AI tools or specialist support teams, while we’re also seeing a decline in generalist investors, as firms increasingly move towards sector and/or stage specialisations.
Above all, we are firmly in the era of thesis investing; funds defining what they stand for, what they want to invest in, and how they see their work impacting the world. However VCs choose to set themselves apart from the competition, defining it in clear terms and communicating it strategically with the market is what will ultimately spell success or failure.
Advocate for yourself
If developing a thesis is the first step, the rest of the process can be neatly summarised as advocating for what you believe in. The most successful firms are not only able to articulate what they are aiming to achieve, but can also explain why they think that and are prepared to defend it.
Once you have an opinion or thesis defined, it is also crucial to establish who your primary audiences are. Secondary audiences will likely include the entire global technology and investment ecosystems, but a more targeted approach will inevitably yield better, and faster, results.
In addition, a detailed audience breakdown will help ensure that you are utilising the correct channels. Larger funds and media-first firms like a16z or 20VC are able to take an expansive approach. Well-resourced VCs have become media production powerhouses, with traditional media, owned newsletters and speaking appearances paired with newer channels, like podcasts and social content. Smaller firms certainly don’t have to do it all, but doing nothing is increasingly not an option.
Finally, it is also important to consider the tone of VC communications, and ensure that it matches the channel, the audience, and the thesis. It’s well understood that social media requires a different tone of voice to an investment report, but it’s just as important for VCs to consider tone as part of their holistic brand strategy. Brands have personalities, and it is natural to expect a firm specialising in consumer-facing health tech products to sound different to one targeting B2B SaaS plays, for example.
VCs : you are not alone.
In short, it’s been a crazy couple of years and VCs are quickly realising that in order to stay competitive, they need to reassess not only what they’re saying, but also why, how, where and to whom. If that sounds like a daunting prospect, don’t worry – we’re here to help!
Get in touch to find out more about our work with VCs across Europe.