One Small Step for Crowdfunding; A Giant Leap for Startups

Last year I wrote about online crowdfunding, and how it could give startups another way to not just raise
Jb_modern_subj_ecapital but also take their stories public. There was much excitement here in the NY tech community and nationally about the potential of this new money-raising method at the time.

There were also concerns, and that is perhaps why the SEC has dragged its feet in defining rules for how it all would work. The JOBS Act was signed into law some time ago, but the SEC's inaction has left many startups and crowdfunding platforms like NY-based Return on Change (RoC) in a holding pattern.

Social-media based crowd funding took a small but important step forward last week, as reported in the WSJ, by finally allowing startups to solicit funds via online advertising. However, at least for now, only so-called accredited investors (AKA the certifiably wealthy) can participate.

I first learned about this when I saw a flurry of emails on thre NY Tech meetup mailing list. I also saw a note from RoC which said that Thankster.com, another NY tech company, was the first startup to go live on the site.

I know Thankster as it was founded and is led by my brother Paul (here I must insert a shameless plug that the site offers a great way to order, personalize and send real cards).

I asked Paul what the latest SEC move on crowdfunding means to him and his company; he said: "This rule change should be a great boon to our
crowdfunding efforts, because it means we can cast a wider net and reach out
more broadly to those who might be interested in being part of our story and
our growth.  We always have great personal responses from users, partners,
and others we share our vision with, and now it will be easier to share our
prosperity as well."  Well said, bro!

What about the fine print?  I asked Jeffrey Koeppel, a crowdfunding lawyer, and he said:

"The change in the rule does not
guarantee a free ride. Companies must now take 'reasonable steps to ensure" that the investors are 'accredited.' This is a change from the old rule that basically let investors self certify." He also pointed me to his blog on the topic.

Still, it is exciting news and I hope that the SEC opens crowdfunding up to the general public soon.

 

Posted in Current Affairs, NY Tech, Tech PR | 2 Comments

Recent News Events are Good PR for Tech Media

While many tech PR clients prefer coverage in the biggest publications, the NSA story demonstrates the
Search_sleuthcontinued and enduring importance of tech media – and not just for the quick hit.

Seasoned PR practitioners know that consistent coverage in the tech trades and blogs can be a good way to get on the radars of top tier media – and put those reporters in a buying mood for PR pitches and client stories.

WSJ columnist Gordon Crovitz wrote last week about the NSA story, and how tech media jumped in and corrected inaccuracies about key details; they kept MSM "honest" and served as fact checkers, and correctors of the record.

What about exclusives for your big launch news? That kind of story should be given first to biggest and most impressive publication that will run it – right?

The Guardian broke the NSA news before others piled on. An article in the NY Times reminds us that big news will find its own way to major media and the vast audiences they reach, regardless of who runs it first.

Of course, most tech news is not of the blockbuster variety that could interest a mass audience. But the above examples show ithat, if you do have really big news, it's a mistake to assume that you need to go to top tier first to make a splash.

Why not give that big story to the reporters and bloggers laboring on the front lines of tech coverage – the ones who cared and took the time to listen and write when "bigger fish" turned away?
And it would be good PR for tech media if they trumped Guardian or Gawker, or whomever, to break that next big story of national importance, would love to see that happen.

Posted in In the News, Tech PR | 1 Comment

Splash of PR Helps Startups Swim with Sharks (and Get Funded)

My friend and fellow Windmill Networking columnist Judy Gombita wrote recently about the positive impact
Sharks-cartoon that reputation can have on company value.
This is true for small and large companies, private and public.

But there is no better way to understand the value-building potential of good buzz and PR than to consider what it can do for tech startups – the types of companies that we work with at Fusion PR.

VCs are generally in the driver’s seat when it comes to startup funding (unless you are one of those rare ones leading a hot new space that VCs are clamoring over). Most VCs are inundated with business plans. And many startups are underfunded and badly need cash to realize their dreams – whatever this might mean in terms of ownership and potential loss of control of the company.

But what a difference when the wind of great PR is at the backs of young companies! (Sadly, It is not always easy to get founders to see this, is as many are led by techies who might not understand PR).

Norm Roesnthal, who heads Fusion Business Accelerator,, always counsels clients to allocate at least some budget for PR before approaching investors. Getting featured in even just a few of the publications investors read can help – and a major hit in top tier media can work wonders.

Awhile back I referred to crowd funding websites like RoC or Kickstarter as the new press release. These sites show the very real and direct connection between buzz and fund raising results. Good buzz gained by tapping founder social networks and through media coverage helps drive interest in crowd funding campaigns. The excitement builds as the startup nears its funding goals, driving additional media interest and coverage. And so on.

An article in the NY Times showed how good PR can tilt the balance of power from investors to startups. It shared the story of VerbalizeIt, a tech startup that went on the TV show Shark Tank to publicly pitch the investor panel – and promptly parlayed the PR boon into a better deal, thumbing their noses at the offers they received on the show.

Posted in In the News, Tech PR, Television | Comments Off on Splash of PR Helps Startups Swim with Sharks (and Get Funded)

Times: PR Execs Blew the Lid Off Bloomberg Affair

As readers of this blog know, I like to call out unfair reports about the PR profession (hence the name of
51nCX9boNsL._SL500_AA300_.pngthe blog – “Flack” is pejorative for PR).

I do this regardless of the importance of the offender. E.g. I have taken the NY Times to task a number of times – see my posts NY Times Pans… the PR Profession, Absurd to Call Customer Service Issue a Tech PR “Fail” and NY Times Public Editor puts PR Through its Paces).

The sad fact is that the PR profession is poorly understood, and more often associated with spamming, spinning and fixing than more positive things (see my post PR: The Color of the Brand). This at least partially due to how PR is portrayed in the media and popular culture.

This is all by way of saying that, while I sincerely do not take pleasure in all the heat that Bloomberg is taking for the fact that their reporters (allegedly) crossed the line and improperly monitored sources’ use of the ubiquitous terminals – I was happy to see a news report in the Times that pointed out the positive role of PR execs in getting to the bottom of the story (it is a great read, and explains how Goldman PR chief Jake Siewert compared notes with counterpart Joe Evangelisti at rival firm JPMorganChase to figure out what was going on).

Like I said, I call ’em as I see ’em, and point out the good and the bad – thanks, NY Times for a nice story about PR heroes.

Posted in Uncategorized | 1 Comment

This is an investigation! Hand over your PR files and emails…

If you are in PR and read the title of this post, your heart may be beating just a little bit faster now. Could it
Mechanical-paper-shredder
really happen to you?

It’s a natural concern, given the latest headlines. There have been a number of big news stories recently about behind-the-scenes spin control efforts, which are causing embarrassment and possible legal problems for those involved.

The most notable is the continuing saga of the Benghazi consulate attack, and Congress’ efforts to figure out who did what and when to those now infamous talking points (see my previous post on this). Also, if you are in NY, you may have seen news about emails that showed the Bloomberg administration’s efforts to rally support for Cathleen Black, who had been the mayor’s controversial choice for the city’s school chief before she resigned.

These types of stories might may make you squirm and think: “there, but for the grace of
different rules for public officials and companies, goeth I.”
If this happened to you, what kind of story would it be? And what should you do differently to prepare for this possibility (if anything)?

While it might seem unlikely that the FBI will raid your office any time soon, or that anyone will publicize info that you hope to remain confidential, it is not impossible. In this era of lawsuits – and in which much of our communications are captured electronically – there may come the day that you are the subject of a story.

You may pride yourself in running a very ethical PR ship – one that does not break laws, or advocate lying or dishonesty – but remember, there are many other types of situations that could cause embarrassment if made public. Perhaps there are emails about poor product quality, product liability issues or crisis management damage control efforts. Maybe there are records that show hypocrisy between internal discussions and public statements.

Some might be tempted to try to batten down the hatches and plug leaks (on that note, I saw an interesting article about Strongbox, a kind of DMZ for journalist tips). Sure, why not harden info security, and while you are at it, get clients to pay with BitCoins – that way there will be no record of the transaction!

I say these things half in jest. The fact is, we need to be able to communicate in private – to speak frankly and directly to clients or internal stakeholders; and they need to be able lay the sometimes-embarrassing cards on the PR planning table, trusting that the info will remain confidential if desired.

But we should do so while keeping in mind that the information could get out some day.
It is a sobering thought, one that can help motivate us to be ethical and the best that we can be, every day. Fear of consequences is the bad cop to the good cop of our desire to do the right thing.

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4 “Present Shock” Trends – and What they Mean for PR

I interviewed author Doug Rushkoff in March ago regarding his book, Present Shock.
Ps

In the book, Doug discusses trends that effect how we live, communicate and soak up and produce info and culture. One of the most startling relates to something he calls Narrative Collapse, i.e. we are living eternally in the present and thus losing the ability to understand complex stories. My interview with Doug focused on what Narrative Collapse means for marketers.

More recently I wrote about how the events and news coverage around the Boston Marathon bombing sounded a lot like some of the realities described in Present Shock. I thought it would be a good time to revisit Doug’s book and get his take on implications of other aspects of Present Shock for marketers and the PR field.

I interviewed him again, and list my questions and his answers under each trend outlined in the book, along with a brief explanation.

it is heady and complex stuff, and hard to do justice to in a brief post, so I suggest that you go out and get his book.

1. Digiphrenia

Digiphrenia is the confusion that results when we divide our attention between the digital world and the real live here-and-now. In this chapter, Doug also discusses recognizing chronos vs. kairos; i.e. chronological time vs. opportunistic timing:

Q: How do we leverage kairos? You advocate taking breaks from the digital world – yet how can a busy reporter or PR person do this without missing something important?

A: Most simply, we have to recognize that not all times are the same. It sounds so crazy and outlandish, I totally get this. But there are better times for some things than others. Monday isn’t the same as Wednesday. We kind of get this. A party on Monday night is going to be different than a party on Saturday night. But we don’t apply it in our operations and communications, except in the most rudimentary way, like timing things to the news cycle or the work week.

Most companies seem to think of time as generic, and that growth should move smoothly upward no matter what. Markets and audiences can’t expand and contract. They have to grow steadily. Well, nothing in nature does that. And humans – particularly networked humans – are moving into increasingly natural relationships to one another. Unlike a mass media world, where we all are timed to the same central clocks and programming, people are now engaging in a lateral fashion, and getting their timing collectively as a culture.

We should begin to respect “timing” over “time.” That’s what the book teaches people how to do. What’s the best time to tell dad you crashed the car? It has nothing to do with the time on the clock. It’s more about timing: after he’s had his drink, but before he has opened the bills.

On an individual level, this means respecting that you can’t be always on. You can be a great, always-on journalist or PR person or Twitter watcher for a few hours. But then you really do get to take time off. That’s how the crews on submarines do it. They take shifts off when they are really *off*. That’s because when they are on they need to be really on. If we attempt to do our jobs all the time, we end up not doing them very well.

On a company level, it means understanding the timing of your market, consumers, employees and investors. You can’t email them calls to action every day, like The Gap does. People grow immune. You have to time these things, http://twitter.com/#!/AllthingsIC that’s all. And the way to recognize what’s the best time is by appreciating the ebbs and flows of your market.

2. Overwinding

Overwinding means temporal compression… it is what happens when we attempt to “squish really big timescales into much smaller or nonexistent ones. It’s the effort to make the ‘now’ responsible for the sorts of effects that take real time to occur – just like overwinding a watch in the hope that it will…. run longer than it can.”

Q: Should we run to temporal compression or run from it? Should we feed into overwinding by continuing to urge consumers to Act Now? How do we “spring load appropriately”?

A: What I try to teach in the book is just that. Answering how to spring load appropriately in a single paragraph would be overwinding. Some things really do take more than six seconds to convey. It’s really that simple. The way to spring load appropriately is to be able to tell the difference between what should be jammed into tiny time frames, and what needs time to unfold. “Act now” has become increasingly irrelevant in a culture that’s always on. We know it’s still going to be there. You can’t make us feel any more pressured than we do. We don’t believe you.

The alternative – the welcome alternative – is for companies and brands to be available to us in *our* time. And you don’t figure this out through big data analysis of your consumers, but by becoming a living member of their culture. Your company, your brand, becomes the medium not the message. You are the bed of culture on which we people do what we do.

The other trick to getting out of overwinding is not to be slaves to your shareholders. They really are the enemy of living or operating on appropriate time scales. The smart public companies are going private for a reason.

3. Fractalnoia

Rushkoff explains that fractals “offer us access to the underlying patterns of complex systmes while at the same time tempting us to look for patterns where none exist. This makes them a terrific icon for the sort of pattern recognition associated with present shock – a syndrome we’ll call Fractalnoia.”

Q: How can we use fractals to understand the media landscape? How do we get on the rising wave of the next hot topic? Does screech (i.e. noise from the instant feedback of social media) make online reputation management impossible?

A: Lots of big questions – all best answered with an hour of work reading this chapter! What I try to do in the book is convince people in all sorts of industries to learn how to see the patterns underlying what they do: the landscapes instead of the subjects. So yeah, that means learning how to see the media less in terms of its subjects than its shape – the “standing wave” that actually carries the various subjects and stories that come to us. If you want to put something out there, it’s a bit like joining a game of jump rope. You have to learn how to see the patterns and the underlying rhythms.

The screech of instantaneous feedback doesn’t make reputation management impossible; it merely changes your high leverage point. You can’t go at it as a form of crisis control. Your reputation isn’t some external aspect of brand that you manage independently. It is tied to who you are and what you do.

The great PR people have always known this. I’ve spent time with Howard Rubinstein, the original crisis manager, and he always said that you have to change the story by changing the story – not just by changing the way it’s told.

Q: “Just doing all the right things” sounds a lot like the same old social media transparency ethos / advice – we are assuming here that we have good and ethical clients, all who want their slice of attention.

A: Now the “just doing all the right things” advice is a bit old, I admit. But I was the one who started saying it back in the mid-90s with my then-controversial book “Get Back in the Box.” I argued that social media would generate transparency and that this transparency would require a return to basic competency. And it was laughed at! This was the era of Jack Welch’s General Electric, when Harvard Business School was advising people to sell any productive assets and become more like banks. The idea was that competencies required labor, and labor costs money. And that you can make more money simply lending money than selling real things.

While that might be true, we can’t all be banks. The landscape becomes too crowded and then the banks fail. Oh wait – that happened.

So instead we can choose to become deeply competent. Deeply so. But that requires finding and building your culture. It’s more than just doing right things. It’s doing them in such a way that you attract the best employees, who then attract the best consumers, and so on. It’s not easy. It takes more than reading an article to figure out.

Q: Is it a fool’s errand to try to stay ahead of the curve, monitor social media and media, and use this info for planning?

It depends what you are using social media for. It’s a fool’s errand if you’re using it to figure out what you’re supposed to be doing. That’s reactive and stupid. It’s not a fool’s errand to use it to learn the rhythms and patterns underlying the culture you mean to serve and be a part of.

And of course you need to have representatives throughout the social media space, because it’s become the default public complaint desk.

4. Apocalypto

Rushkoff calls “a belief in the imminent shift of humanity into a different and unrecognizable form: apocalypto.

Q: This chapter contains great advice, for example “find the sweet spot between storage and flow.” Can you please expand on these ideas?

A: Yeah. A lot of this chapter recaps the call for balance throughout the book. The way out of present shock involves balancing between various poles. Like the need for immediacy and the need for relevancy. Without balance, it’s easy to skid – like you’re on ice. That’s because we don’t have the temporal bearings we used to have. Everything becomes a doomsday scenario. We don’t take into account all the governing factors along the way. We just spin out into panic.

At the same time, we can’t just wave our arms at the change we’re undergoing and expect it all to just go away. We have to engage with our enterprises in new ways. But retaining traction requires we make sense, orient ourselves, learn our culture, and do so in real time. This sense-making doesn’t happen on the balance sheet, or in the big data. It happens in the real world.

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What Happens when Social and Traditional Media Worlds Collide

The Boston Marathon incident and aftermath vividly showed the interplay that can happen between social
6a00d8341c074953ef01127964484c28a4-800wi and traditional media, and what happens when these worlds collide.

We saw a frenetic manhunt that pitted citizen sleuths vs. journalists and made the latter look slow; and media misfires that gummed up the works for everyone from law enforcement to Wall Street (in the case of the hacked Twitter AP account, which led to fake news and tumbling stocks). A number of articles called Twitter "the new CNN."

While this was not the first high profile news event of the social media age, it seems to have been a watershed.  The NY Times wrote:

It is America’s first fully interactive national tragedy of the social media age..The Boston Marathon
bombings quickly turned into an Internet mystery that sent a horde of
amateur sleuths surging onto the Web in a search for clues to the
suspects’ identity… 

Just when that we have gotten used to the relative roles of traditional vs. online media, the new rules no longer seem to apply. Times columnists Nick Bilton questioned the wisdom of crowds, and David Carr pointed out how the incident tarnished CNN, the bastion of 24-hour breaking news.

Maureen Dowd wrote a piece about how everything is, basically, getting shot to Hell

Everybody is continuously connected to everybody else on Twitter, on
Facebook, on Instagram, on Reddit, e-mailing, texting, faster and
faster, with the flood of information jeopardizing meaning. Everybody’s
talking at once in a hypnotic, hyper din: the cocktail party from hell…

 the Boston Marathon bombings exposed a new phase in our experience of what
David Foster Wallace called Total Noise: “the tsunami of available fact,
context, and perspective.”

The unfolding terror,,,, “found the
ecosystem of information in a strange and unstable state… If there ever was a dividing line between cyberspace and what we used to call
‘the real world,’ it vanished last week.” 

Dowd's column made me think of a topic I covered recently, when I spoke with authour Douglass Rushkoff about his new book Present Shock (see the this post, which features the interview).

So, what does this all mean abiout the state and future of news?  How should companies and their brands respond? I spoke with Douglas Rushkoff again recently to get his thoughts, and will be posting the interview soon.

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RTFC – Reading your Way to Tech PR Success

Before I got into tech PR, much earlier in my career, I worked in technical support.
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Back then, we had a saying for customers that did not want to take the time to try to figure things out for themselves – it was “RTFM!” which means Read the F–ng Manual (of course, we never said this to them).

Flash forward, and similar words of wisdom can and should apply to tech PR people.

Actually, reading was always good advice for us; after I joined the profession in the late 90’s, and started climbing the ranks into management, I remember that we always implored the teams to pick up the publications and actually read them.  That was the best way to get smart about the magazines and the topics they covered (this may seen like common sense, sadly many continue to rely on databases of media contacts and preferences rather than read in detail their content).

It is worth repeating, and updating today, because the noise has only grown in the tech world, and all the interruptions from social media – and fragmentation of traditional media – make it all too easy to lose focus and skim the surface.

There aren’t many freshly printed publications to pick up these days, lovingly thumb through and smell the freshly pritnted, glossy pages – but there sure is a lot of reading we can and should be doing.

So, why not resolve to RTFC (Read the F–ng Content) to be a better tech PR person?

This means:

  • Read the publications, print and online, get to know their sections, editors and news appetities
  • Read the articles that feature clients and their competitors – don’t just skim, but read, and try to understand what it all means in terms of positioning, reporter biases, message penetration, etc.
  • Read the gorpy client side stuff – yes dig deep into their white papers, decks, etc. – you will get invaluable product and company knowledge (but don’t just “drink the Kool Aid” – apply your own critical thinking and square what you are learning with what you already understand).
  • Read to improve your writing – see my previous post on this

RTFC done right means carving out quality, uninterrupted time, perhaps on your commute to work or in the off hours – and does not mean ignoring short form content, such as social media chatter; continuie to tune into and read what influencers are saying on Twitter for example – you will learn more about how they see trends, the competitive landscape, and your clients or company.

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Turning the Web Din into a Vibrant Content Marketplace with Content Curation

My monthly Content Marketing column, which ran today, offers content curation tips that are based on how
Snr the pros do it (meanling professional online publishers and news sites).

The appeal of curation for content and social media marketers is obvious; after all, why take the time to come up with original ideas or create all content from scratch when you can simply riff off (or rip off) what is already out there? As the theory goes, you can up your posting frequency and perhaps even quality if you incorporate third party content into the mix.

That is the theory; however doing it well can be fiendishly difficult. The professional sites wrestle with all kinds of issues related to appropriate editorial practices, and the ethics of exploiting the work of others.

How much can you excerpt before curation becomes stealing?  Do you change headlines, or leave them intact?  And what about the tug of war between keeping people on your site vs. the obligation some feel to  send traffic back to the original source’s site (since, let’s face it, the curator is generally not paying for the content)?

I discussed these issues in my post about overcoming content curation challenges.  That post also covered a group that some journalists formed to spell out codes of ethical blogging and aggregation, headed by AdAge writer Simon Dumenco. (I met Simon at a NY content marketing event; he explained the difference between aggregation and curation; my post You Say Aggregtion,I say Curation discusses others’ views on this).

Sadly, many curate do in a way that just creates more noise; I for one, am growing weary of of all those automatically-generated newsletters that clog Twitter and try to pass as clever curation.

The best curators filter Web noise and guide people to the best content. They have a keen eye for what really is interesting, informative and aligned with an audience.  They often provide an expert’s view, adding value and not just mindlessly echoing content for their own gain.

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Grandmaster Flash: Is Magnus Carlsen a Media Darling or Manipulator?

In a story this week, The New York Times called out a “shrewd”: and “carefully constructed” marketing
Checkmatecampaign by 22 year old chess phenom Magnus Carlsen and his “handlers”:

Chess has its superstars, but.. there is no one like
Carlsen, of Norway, who..remains the first world
No. 1 from a Western country since Bobby Fischer.


Carlsen sits at the center of a campaign carefully constructed by him
and his handlers to use his intelligence, looks and nimble
news-media-charming skills to increase his profile outside the sport, as
if he were a tennis or golf star. Not since the days of Fischer,
Kasparov and Karpov has a player managed to move so deftly beyond the
world of chess into the world at large.

I read the story closely and could not find examples of the referenced campaign.  I did find good reasons for the media and world at large to be taken by the star – his winning record, young age and good looks, for starters.  I saw a star riding a wave of media popularity, and basking in its glow.

The reporter cites these things, yet attributes the extensive and glowing coverage to calculated marketing;  the media, apparently, are hapless victims of the charm offensive (oxymoron alert).

Perhaps there was some marketing campaign – the reporter mentions sponsors, but,these often follow someone with telegenic appeal and a winning record.  They are not generally part of a campaign designed to manipulate the media.

I think it is kind of funny and cynical to say that Carlsen and handlers are running a calculated marketing campaign, instead of owning the fact that reporters like to cover this star – why not admit the simple fact that Magnus Carlsen is a good story?

The NY Times has done this kind of unfair depiction of marketing and PR before; see my earlier stories:

NY Times Pans Assad Media Campaign – and the PR Profession

Absurd to call Samsung Customer Servcie Issue a “Tech PR Fail”

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