A legendary private equity PR pro shares some wisdom
Key Takeaways:
- Strategic PR helped a16z build credibility and stand out in private equity.
- Communications focused on raising the profile of the entire team, not just the best-known founder, which helped manage reputational risk and establish trust.
- Intentional, proactive media outreach ensured a16z received prominent and message aligned recognition in landmark deals.
The Axios Pro Rata newsletter, required reading in the private equity world, has a terrific valedictory interview with Margit Wennmachers, retiring head of communications at Andreessen Horowitz (AKA a16z).
The Oct. 7 writeup by Dan Primack is all about how Wennmachers initially helped a16z punch above its weight in the VC space more than 16 years ago. It’s short and worth reading in its entirety if you’re interested in private markets PR, but it does not seem to be posted online. Contact me if you can’t find it.
Following are a few takeaways:
- Effective PR can be core to the underlying business; Too often communications is entirely associated with marketing & selling what you’re making. So, incremental widgets sold, prospect meetings booked, funds raised—and PR certainly can move the sales needle.
But for a16z, Wennmachers suggests comms was critical to the investment strategy itself, especially in the early days of the firm. With all the choicest private equity deals being competitive and a16z not yet a household name, it was imperative for the firm to quickly build awareness and credibility in the deal space.
“Thus, thoughtful PR can accrue to value creation, not just sales.”
- Avoid the lure of the low-hanging fruit; When a16z launched in 2009, Co-Founder Marc Andreessen was already famous as a co-founder of Netscape and general darling of Silicon Valley. He appeared on the cover of Time. His partner and co-founder, Ben Horowitz, however, was less well known. It would have been easy to coast on Andreesen’s name, but instead Wennmachers hired an experienced senior level former colleague just to focus on raising Horowitz’s profile.
Thus, PR can be an important tool for managing “key person risk.” - Seize the news cycle; When a16z sold Skype to Microsoft Wennmachers said she and her team were in touch with key reporters well before Microsoft held a news conference to announce the deal. That meant that four out of five stories had an “a16z sells Skype to Microsoft” type of headline rather than “Microsoft acquires Skype.”
Seems like a small, subtle thing, but in a dynamic transaction-driven environment, a little advance legwork can help shape the message and ensure your client gets their share of the deal limelight.
The article is a great reminder that PR pros who are doing it right are intentional, strategic and zealous advocates for their clients.
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