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Reputation-Led Growth and the new paradigm of startup growth

In a market where blue oceans are increasingly scarce, the real differential lies in how a brand builds and communicates its reputation.

In other words, innovation alone is no longer sufficient to fuel a process of exponential growth and market attention attraction, as we have seen in the last decade. In a scenario where every startup, no matter how disruptive it is, faces fierce competition, consumer skepticism also grows – making it difficult for consumers to differentiate the ‘new’ from what really has come to stay and solve their pains.

Here is where the decisive factor comes in. Today, what separates businesses that survive from those that scale is reputation. When I talk about reputation, I refer not only to the ability to communicate the impact of the value proposition but also to the ability to ‘talk’ to the public and manage the market’s narrative around the brand. After all, a company’s reputation is not just a reflection of what it says about itself, but of the genuine perception it builds in the market. 

To get an idea of the size of this impact, the 2nd National Survey on the Impact of Public Relations in the Innovation Market – Investor’s Perspective, developed by MOTIM, reveals that 91% of investors agree that brands efficiently presenting their value proposition significantly increase the probability of receiving a financial injection.

This means that currently, having a disruptive solution or cutting-edge technology is no longer enough. If the brand does not know how to build connection and trust, it has already lost the race. And here, I am not talking about catchy slogans or passing marketing campaigns. I am referring to consistency, authenticity, and frequency. Reputation is built every day, and each action is an opportunity to reinforce or undermine that trust.

Reputation-Led Growth: a new approach comes into play

It is in this context that the mentality of Reputation-Led Growth emerges: a strategic approach that integrates the unique assets of the company — its history, its values, what the brand represents, and how the leader embodies all of this in a continuous reputation management process.

The concept not only helps to broaden reach but also creates stronger bonds with customers, partners, and investors, educates the market, accelerates the sales process, and attracts the best consumers, keeping them close and engaged. More than that, it is essential to preserve the company’s image, protecting it from market fluctuations and competition’s fury.

No wonder, using numbers from MOTIM’s research as a basis again, nine out of ten investors consider the personal brand of the founders a determining factor in the investment decision. Furthermore, over a third of venture capital market professionals view the positioning and history of the founders as the primary assets of a brand in the pursuit of investment.

These data show that founders and leaders have become more than just business managers. They must be the guardians of the brand’s reputation. Those who still believe that building a strong business is optional will realize too late that the market is no longer driven solely by good ideas. We are in an era where real value lies in the trust and credibility a brand conveys — and in how it remains relevant in consumers’ daily lives in the long run.

The era of improvisation is behind us. If reputation is growing at the same pace as the business, we have entered the era of Reputation-Led Growth. Here, the only sustainable advantage is to be remembered, and to be remembered for the right reasons.

*Silas Colombo is CCO and founder of MOTIM. Graduated in Journalism and with an MBA in Communication and Marketing Strategies from Cornell University, he was responsible for developing communication campaigns for brands such as Itaú, Volkswagen, and the Organizing Committee of the Rio 2016 Olympic Games. At the accelerator, he is the communication director and has already produced public relations strategies for more than 200 brands in innovation, technology, and entrepreneurship, from startups to multinationals.