In this company interview, we sat down with Jordan Greenaway, our Managing Director, to discuss July’s research report and what the key reputation recommendations are for start-up investors. The full research report can be downloaded here.

Why did you decide to focus on this particular subject?

Jordan: In the aftermath of the pandemic, more individuals and family offices have chosen to diversify their investment portfolios. One of the biggest winners of this shift has been start-ups and venture capital investments. 

Families have been attracted by the exposure to technology as well as the potential strong returns from these types of investments, especially in a low-interest-rate environment. I had a feeling that investing in start-ups could result in a big boost for an individual’s reputation. Investing in start-ups is associated with supporting entrepreneurship, bringing new products, and creating jobs.

But I wanted to prove that hunch and, much more than that, I also wanted to understand what reason for investing in a start-up would command the biggest reputational premium for an investor. In short, I wanted to have the raw information to be able to advise our clients about the best way to communicate their start-up investments.

Which audience is this research for?

Jordan: Anyone who is actively investing or thinking about diversifying their investment portfolio. Although, this doesn’t just mean angel investors or active VC investors.

In my experience, many wealthy individuals and families make their investments in other businesses through their family business or family office. For example, if they own a large furniture manufacturer, they might invest in a logistics platform. The business and shareholders should also use this opportunity to communicate positive messages about how they’re investing in impactful, job-creating businesses.

Finally, I think this research will be particularly interesting for next-generation family members. We are currently working with a number of next-gen members who are taking a leadership role in VC and tech investment for their families and family businesses. These younger family members can also use these investments in subtle, but effective, ways to build their own reputations positively and build credibility in the marketplace.

What piece of data surprised you the most?

Jordan: The biggest surprise, by far, was the difference between different generational groups. I went into the research expecting respondents to be split into roughly two groups: older people who cared about economic impact, and younger people who cared, more broadly, about societal and environmental impact. This research shows that this monochrome view is much too simplistic.

In particular, our research revealed that there were three generational groups: older respondents (over 55-years-old) who saw impact in terms of economic impact and job creation; a slightly younger group (25-years-old to 55-years-old) who saw impact in terms of gender diversity and sustainability; and the very youngest respondents (under 25-years-old) who put more emphasis on racial justice and equality.

For example, members of Generation Z said that of all the possible reasons that an investor could give for backing a start-up, saying that they were investing in the business to back a BME entrepreneur would have the biggest impact on the investor’s reputation. I thought this said a lot about how expectations and priorities are changing between different generations.

What is the one takeaway recommendation?

Jordan: Don’t hide your small or start-up investments. The research firmly shows that investing in start-ups can radically improve an individual or family’s reputation.

Start-up investment comes with a huge amount of positive reputational implications. Unfortunately, many families and individuals decide not to talk about them because they are a very small part of their portfolio. While this is understandable, it is the wrong approach.

Why is Transmission Private’s research different?

Jordan: Our research is based on real evidence and data collection. A lot of the PR and communications industry is based on instinct and ’‘putting your finger in the air’. When we advise clients, we want to approach their problems with a firm understanding of how people really think.

PR has suffered from a reputation of being a ‘dark art’ built around relationships and illusion. We are trying to make the trade a lot more transparent, practical, and hands-on. Data is key to success in sales, investment, and strategy. Yet, it seems that in the reputation space, there is an instinctive resistance to measuring advice against real evidence. We are changing that.