Why Social Media for Startups? 7 Tips to Grab Now!

Businessman using smartphone with social media icons for startups.

In today’s hyper-connected world, social media has emerged as a fundamental element in shaping business landscapes. For startups, especially, these platforms offer a direct line to potential customers, partners, and, critically, investors. The evolution of social media has coincided with regulatory advancements such as the JOBS (Jumpstart Our Business Startups) Act in the United States, which has significantly altered the fundraising environment by allowing companies to publicly advertise their fundraising efforts—a veritable game changer.

Here’s why and how startups should leverage social media to catapult their growth and visibility.

1. Increase Visibility with Targeted Content

Startups often face the challenge of building brand recognition from scratch. Social media accelerates this process by providing platforms where targeted content can reach a global audience at the click of a button. Content that resonates with a specific audience can elevate a startup’s visibility exponentially.


Social Media Platform Content Format examples Ideas of main objective
Instagram Photos, Short Videos (Reels, Stories) Increase brand awareness, drive engagement, and humanize your brand.
Facebook Blog Posts, Articles, Live Videos Generate leads, establish expertise, and drive traffic to your website.
Twitter Short Videos, GIFs, Text Updates Foster community engagement, build brand awareness, and drive traffic to your website.
LinkedIn Industry Reports, Articles, Long-Form Videos Establish thought leadership, build credibility, and connect with potential investors, partners, and talent.

Tip: Focus on creating high-quality, engaging content that reflects your brand’s values and vision. Use analytics tools provided by platforms like KorePixel, Facebook and Instagram to understand the demographics of your audience and tailor your content accordingly.

2. Engage Directly with Potential Investors

Under the JOBS Act, particularly Titles II, III, and IV startups have the unprecedented ability to openly solicit investments from the public (non-accredited) and accredited investors through social media channels. This can drastically expand the pool of potential investors beyond traditional venture capital networks.

Tip: When engaging with potential investors, maintain transparency and professionalism. Regular updates about your business’s progress, insightful posts about your industry, and thought leadership articles can help establish credibility and attract investment.  Make sure you work with your FINRA Broker-Dealer to make sure your messaging is compliant.

3. Leverage Influencers to Build Credibility

Influencers in various industries can provide startups with a much-needed credibility boost. They can act as brand ambassadors, lending their reputation and following to the startup’s products or services. This is particularly effective in industries like technology, fashion, and health and wellness.

Tip: Identify influencers who align with your startup’s ethos and have a genuine interest in your industry. Collaborations could range from simple endorsements to complex partnerships like co-branded products or guest appearances on webinars.

4. Utilize Cost-Effective Advertising

Advertising on social media is generally more affordable compared to traditional media channels. Moreover, it offers the advantage of being highly customizable in terms of audience, budget, and timing. For startups, this means being able to run lean, efficient campaigns that are data-driven and optimized in real-time.

Tip: Experiment with different advertising formats and platforms to find what works best for your startup. Utilize A/B testing to gauge the effectiveness of your ads and continuously refine your strategy based on performance data.

5. Showcase Your Company Culture

Today’s consumers and investors are increasingly interested in the operations behind the brands they support. Social media gives startups an excellent platform to showcase their culture, values, and the people behind the scenes. This not only helps in building a brand but also in attracting like-minded employees and investors.

Tip: Share behind-the-scenes content, employee stories, and community involvement activities. These posts humanize your brand and can create emotional connections with your audience, which is invaluable for loyalty and engagement.

6. Monitor Feedback and Respond Quickly

Social media channels are a goldmine for customer feedback. Monitoring what people are saying about your brand online can provide you with insights into market needs and product shortcomings, allowing for quick adjustments. Additionally, engaging with followers through comments and messages can build a sense of community and loyalty.

Tip: Set up alerts for mentions of your brand across social media platforms and the web. Use tools like Hootsuite or Sprout Social to keep track of conversations and respond promptly.

7. Drive Traffic to Your Website

Ultimately, the primary goal of most social media activity is to drive traffic back to your company website, where potential investors or customers can take the next step in the engagement process. Social media can effectively funnel users to your site by linking to blog posts, product pages, and other relevant content.

Tip: Ensure that your social media profiles are optimized with a clear bio, link to your website, and a consistent name and image across platforms. Use strong calls-to-action in your posts to encourage clicks to your website.

For startups today, mastering social media is not just an option—it’s a vital part of business strategy. The synergy between regulatory environments like the JOBS Act and the expansive reach of social media offers unprecedented opportunities for startups to secure funding, build brand presence, and engage with a global audience. By embracing these platforms strategically, startups not only enhance their visibility but also forge a path towards sustainable growth and success.