2025
Working Paper
HBS Working Paper Series

Investor Influence on Media Coverage: Evidence from Venture Capital-Backed Startups

By: Brian K. Baik and Albert Shin

Format:Print
| Language:English
| Pages:51

Abstract

We examine whether and how investors influence media coverage of their private portfolio companies. Using a stacked difference-in-differences design, we find that media coverage of startups increases significantly following venture capital (VC) investment. The effect is concentrated among startups backed by VCs headquartered in media-dense cities, high-reputation VCs, and early-stage investments. We also show that increased media exposure is associated with a higher likelihood of raising subsequent financing and improvements in employee quality. To complement our empirical analysis, we conduct a global survey of 399 VC investors across 382 firms. The majority of respondents report taking active steps to increase portfolio company visibility, primarily to support branding, hiring, and stakeholder communication. Our findings highlight media management as an economically meaningful and previously underexplored mechanism through which VCs add value to their portfolio companies.