Jan 2, 2019 · 39m · a16z
a16z Podcast | How to Manage a PR Agency
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gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions
In this episode of the a16z Podcast, host Sonal Chokshi interviews communications experts Margit Wenmachers and Shannon Brayton on how tech startups should navigate public relations. The discussion provides a comprehensive guide for founders on selecting PR agencies, building authentic corporate narratives, managing crises, and establishing effective operational partnerships.
How this conversation actually went
Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. The host holds 23.2% of the talking time here. How this is scored →
The host as informed peer 3.1 Guest teaching 4.3 Guest disagreement 1.5 The host pushing back 3.1
speaking balance: gold is the host, purple is the guest (3 minute bins)
Sharpest disagreement ▶ 23:39 Margit rejects agency re-pitching
Margit forcefully rejects the practice of allowing incumbent agencies to re-pitch when put under review, asserting that any agency wishing to do so should simply be fired again.
Hardest push from the host ▶ 2:52 Host pushes back on founder agency managementSonal directly challenges the guests' claim that founders must invest significant time in PR agencies, arguing that the core purpose of outsourcing is to eliminate extra work for busy CEOs.
Biggest teaching moment ▶ 37:18 Shannon dismantles founder PR expectationsShannon corrects a fundamental founder misconception, explaining that PR is not as simple as calling a reporter to request coverage, but requires deliberate narrative strategy.
The host holds their own ▶ 4:41 Host presses on in-house vs agency efficiencySonal actively pushes the guests to justify why a company should hire an agency at all if internal staff still need to perform the heavy lifting of story discovery.
the scores for every segment, with the reasoning behind each
| Chapter | Topic | The host as informed peer | Guest teaching | Guest disagreement | The host pushing back | Why |
|---|---|---|---|---|---|---|
| Deciding When to Hire a PR Agency | 3 | 5 | 2 | 5 | Sonal plays devil's advocate for busy founders, arguing that outsourcing PR should mean not having to think about it. Margit and Shannon reframe this, explaining that agencies require deep two-way relationship investment to surface stories. | |
| In-House PR Versus External Agency Roles | 4 | 4 | 1 | 4 | Sonal pushes on why a company wouldn't just hire in-house staff if agency management requires so much internal effort. Margit and Shannon break down the division of labor, flexible cost structures, and specialized reporter access. | |
| Timing and Story Development Strategies | 3 | 4 | 2 | 4 | Sonal raises concerns that asking founders for dream headlines could send mixed messages or foster unrealistic expectations. Margit clarifies that working backward from a dream headline helps substantiate key narrative requirements. | |
| Navigating Inflection Points and Crisis Management | 3 | 5 | 1 | 3 | Sonal notes it is counterintuitive that companies need PR agencies when traction is strong rather than when struggling. The guests explain pre-IPO quiet periods, crisis management necessities, and legal vs PR transparency dynamics. | |
| PR Agency Specialties and Campaign Planning | 3 | 4 | 1 | 2 | The conversation covers domain-specific PR specializations such as hardware reviews, consumer broadcast TV, and holiday gift guide lead times. Sonal adds context regarding magazine placement impact for beauty brands. | |
| Demystifying PR Terminology and Pitch Processes | 4 | 4 | 3 | 3 | Sonal initiates a PR buzzword breakdown (AOR, RFP, media shop) and asks how to prevent agency complacency. Margit strongly argues against allowing incumbent agencies to re-pitch for business if put up for review. | |
| Operational Best Practices and Agency Alignment | 3 | 4 | 1 | 3 | Sonal asks how to diagnose agency failure versus client error and how to justify PR costs internally. Margit and Shannon stress reporter referencing for agency vetting and insist CEOs must remain accessible to agencies. | |
| Preparing for IPOs and Organizational Structure | 2 | 4 | 1 | 1 | Shannon dispels misconceptions about IPO day complexity, pinpointing the first public earnings call as the true operational hurdle. Margit and Shannon advocate for direct PR access to the CEO. |
Statements from this episode (25)
Wenmachers: Early-stage PR aids hiring and fundraising, not customer acquisition
“And if it's early stage, PR can be very helpful because it makes everything else easier. Right. So it makes hiring easier. It makes fundraising easier. It makes everything easier, but there's almost never a direct correlation where it's like, I did this, the i…”
Brayton: PR agency results require close, two-way relationship investment
“Don't expect to hire an agency and get results immediately, just like all of a sudden. You actually need to invest in the relationship both ways. The closer I've brought an agency, the better the results. The more I keep them at an arm's length, the results ju…”
Wenmachers: PR agencies should be managed by dedicated team members, not CEOs
“An agency is ideally managed not by the founder, because as a CEO, you have lots of things to do, right? Like, you're growing a company, you're probably managing engineering still. Like, there's a lot of things to do. So ideally, you have someone with a lot of…”
Wenmachers: Apple has historically operated without hiring external PR agencies
“I mean, like, yeah, I don't think Apple has really used PR agencies. There are models where you don't have an agency at all.”
Wenmachers: In-house PR teams must maintain direct contact with journalists
“And at the same time, I think it's really important for internal folks to be talking to the press, because you kind of lose touch. What is even a good story? What are they thinking? Like, what, what's kind of in the water? And not knowing that at all is just r…”
Brayton: External PR agencies deliver harsh executive feedback better than employees
“This is why I love having agencies do media training too, because agencies can really tell a CEO, actually, you look like a complete dweeb, or this message completely did not resonate, where the employee sometimes has a harder time landing that message.”
Brayton: Early startups should leverage PR agencies to build their narrative
“I think an agency to come in at the very beginning and talk about the company's narrative and what are your value props, what are your market fit, and who are the people running this company? Super, super valuable to have an agency help you do that. Without ha…”
Brayton: Asking founders for their dreaded headline uncovers hidden startup risks
“And then you get a really good view into what's going on when you ask about the absolute dreaded headline, because you can actually glean what is potentially underneath that you're not necessarily being told.”
Wenmachers: Never trust a PR agency that promises specific press outcomes
“And don't trust an agency ever that will promise you a headline or a story or any kind of outcome.”
Brayton: Five to ten monthly media inquiries signals the need for PR
“If you're getting, you know, five to 10 a month, you're probably at a point where you may need an agency to help you manage through that.”
Wenmachers: Startups entering IPO quiet periods without PR leave money behind
“I would say you have left money on the table if you find yourself in that position because there's not that much You can do, like once you meet with bankers, you're in a quiet period, so you can't really be doing anything, right?”
Brayton: Founders without PR expertise must not handle corporate crises alone
“A crisis, I would not leave it to a founder or a management team to manage a crisis on their own if they don't have deep PR expertise.”
Wenmachers: PR strategists cannot assist clients who lie or hide facts
“I cannot help you if you're lying to me, and I cannot help, I cannot steer the ship, story-wise, if I don't know what to stay away from.”
Brayton: PR agencies must pitch with their actual account team
“Do not bring in the shiny object from DC or the shiny object from New York if that is not your account team. Bring the people who are going to work on the account.”
Brayton: Fired PR agencies should not be allowed to re-pitch
“If you put your account up for review, because you're not happy with your agency, the incumbent agency should not be allowed to pitch. I think it's terrible for the agency, and I think it's terrible for the company.”
Wenmachers: PR agencies should never re-pitch for lost client business
“If the agency actually wants to repitch the business, you should fire them again. Because it's just a stupid ass decision. Replace the revenue, learn from why is the account gone, and then move the hell on.”
Wenmachers: Securing media coverage is the non-negotiable core of PR
“Do not ignore media. Because if there's a good story, you have permission to do everything else. You can have every conversation. You can screw up occasionally. But if there's no media, then like, what are you doing?”
Wenmachers: No global PR agency is equally excellent across all offices
“I have not seen an agency that is equally excellent in every office that they have.”
Wenmachers: Founders unwilling to engage with media shouldn't hire PR agencies
“If you don't want to deal with PR, then don't bother hiring an agency. A normal reporter, completely reasonable reporter will expect to see and meet and talk to the CEO.”
Brayton: The best PR agency referrals come directly from journalists
“I think the best agency referrals come from reporters.”
Brayton: A tech company's first earnings call is harder than its IPO
“The IPO has this misnomer that it's like super challenging and tricky and yeah, there's some complexity to it, but what's really hard is your first earnings call as a public company.”
Wenmachers: Public relations teams should never report to quantitative CMOs
“If the CMO is a quant person, I think definitely PR should not report into the CMO because it's just a different animal.”
Wenmachers: Denying PR direct CEO access drastically reduces talent quality
“When a CEO refuses to do that, the Caliber of talent they can get just drops 10 notches.”
Wenmachers: Self-publishing lacks the credibility of independent third-party media
“You can do that, but you will never be as credible as an independent source of information.”
Wenmachers: Half-hearted financial investment in PR is a complete waste
“Take as much care to decide like you're either going to take this function seriously and then actually do it and learn it because the people who are there to help you or actually don't bother because spending two dollars with a half-hearted commitment is a com…”