The economic benefits of brand building as a startup

Brand communication is an important tool to support corporate strategies and business goals for any business – from startups to multinational conglomerates. It helps people understand why the company exists, its long-term ambitions and provides context that allows customers and stakeholders to understand why a product is worth buying or investing in. Brand communication is especially important for startups and growth companies, who often favour conversion marketing rather than brand building communication.

Successful businesses are based on both goals and objectives, as they clarify the purpose of the business and help identify necessary actions.

“Building a brand requires resources, which means that a business leader or entrepreneur needs to have stamina and not only focus on conversion. You cannot build long-term, sustainable growth without a strong brand,” says Anders Kempe, CEO and founder of Bellbird.

A strong brand can help increase a company’s valuation and provides a competitive edge in the capital market, including the ability to successfully close future funding rounds. It also creates better conditions for attracting talent and loyal customers, as well as prestigious collaborations with reputable companies.

”The brand itself does not determine or close a funding round, but having a trusted brand with high levels of brand awareness will have a significant impact on investors,” says Anders Kempe.

For companies that plan to list their shares on a stock exchange, branding is one of the elements that can make or break a newly public company. According to Anders Kempe, companies going public have two choices: being either analysed as a share price, or being a brand that people relate to.

“A brand that conveys a sense of purpose – where your identity as a company is not just about numbers and financials – will increase the chances of getting a higher valuation and helps gain a much better understanding of your company.”

To build a brand, companies need to have a credible story that is interesting enough to pique the interest of third parties including the public and the media.

“A well-established brand is able to reach relevant stakeholders in a way that non-established brands often fail to do. Successfully communicating your purpose, through channels such as mainstream media, can help get stakeholders’ final stamp of approval,” says Anders Kempe.

From a higher company valuation and attractiveness in the capital market to winning the confidence of investors and customers – an established, trusted brand is key to long-term sustainable growth. Ultimately, brand building communication – including telling your company’s story – can be the determining factor between a good idea that fails, and a success story that cuts through the noise, propelling you to the top of your industry.

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Eleven takeaways from the Swedish startup scene

Bellbird has taken a closer look at the Swedish startup scene to find out how the success stories of today build their brands. These insights have resulted in eleven takeaways about brand building, which are useful for startups and established companies that want to take their branding, communication and marketing to the next level.


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