In the early stages of a startup, “brand” is often relegated to the bottom of the to-do list – a creative luxury to be handled once the “real” work is done. However, as the worlds of finance and brand collide, more investors are tracking brand equity as a key valuation multiplier and risk lens. In our latest Startup Essentials article, we hear from John Miller Co-owner and CFO at Traction, on why delaying startup brand development is a strategic error.

Increasingly, the worlds of finance and brand are colliding. More VC and PE firms are now explicitly tracking brand equity as part of how they source, diligence, and value businesses. Focus groups. Brand recall. Social traction. Brand has moved from a marketing consideration to a screening signal, a risk lens, and in many cases, a valuation multiplier.

That shift changes the rules. Founders who still treat brand as something to “do later” are now misaligned with how capital is being deployed. Investors who ignore brand are underwriting risk they don’t fully understand. Startup brand development must be recognised as vital from the beginning.

Brand as a decision system

The best founders I’ve worked with understand. They know brand is neither colors nor logos. It is a decision system. One that deserves the same priority as product development, hiring, or core software integration. When it’s delayed or deprioritised, the impact doesn’t stay neutral. It compounds quietly, until progress stalls.

Poundland is a useful example. For decades, everyone knew what it stood for: one price, everyday value, no confusion. That clarity was the brand. When inflation hit and inputs rose, the promise broke. Instead of reframing the brand, the business simply added multiple price points. It solved the operational problem but destroyed the brand logic.

At Traction, we saw shifts in value and trust perception long before they appeared in the ultimate demine. The brand could attract trial buyers but could not convert them into loyalists. The cost of acquiring and retaining customers climbed and the retailer entered a downward spiral. If they’d considered startup brand development at an early stage, it could have been a different story.

A Surreal approach gains DTC momentum

Cereal brand Surreal entered one of the most notoriously competitive categories there is. They made brand a priority from day one. Makes sense with an ex–big-company CMO as a co-founder. But the early hire of an ex-Innocent copywriter was the catalyst to create a brand people wanted to talk about. Joyful, healthy breakfast, delivered with humour and genuinely enjoyable content.

That clarity created early DTC momentum and more importantly reduced the acquisition costs spiral many start-ups face. Their growth stats convinced retailers to take the brand seriously. Today, Surreal commands attention, repeat purchase, and price tolerance far beyond its size. A 240g box retails at £4.95 vs. £2 for arguable the UK’s most popular cereal, Weetabix. Surreal is roughly one-fiftieth of Weetabix’s revenue yet punches well above its weight in brand equity.

DASH Water followed a similar logic. Competing against industry behemoths Evian and S.Pellegrino, it chose not to shout about taste alone. Instead, it built a soft drinks brand rooted in protecting people and the planet. That mission created followers, not just buyers. As a result, DASH now leads the UK seltzer category with a 39% share of value sales and achieved a CAGR of 74.3% between 2020 and 2023. Early indications show that 2025 was their first profitable year.

If you are still questioning the value of brand Investment. Then the icing on the cake is the valuation multiplier it creates. 

Research from Forbes shows that brand contributes, on average, ~20% of enterprise value (‘EV’). Not investing early and consistently risks leaving money on the table at the next round. Therefore, investing in startup brand development is financially strategic.

From my experience, 3 things matter early on.

1. Positioning and messaging clarity

Define who you serve and why anyone should trust you. Consistency reduces friction and drives revenue. Marq shows a 10–20% uplift from consistent brand presentation. Traction data shows why: 25% of tonic buyers would pay more for a brand they trust, versus just 16% prioritising ingredients. Trust, not features, is what unlocks price and margin.

2. Brand touchpoints that convert

Prioritise high-leverage assets such as homepage messaging, high quality socials (including founder profiles), proof blocks, pricing clarity, and sales decks. These are the moments where brand turns into revenue (and EV). In practice, strong startup brand development can help accelerate these results.

3. Repeatability over perfection

Say one clear thing that no one else can credibly say. You don’t need more. Prove it through product, behaviour, and communication. Then repeat it everywhere, consistently, over time.

Brand rarely fails because it was done badly. It fails because it was done too late. The businesses that win treat it as an early decision, not a finishing touch.

John Miller is co-owner and CFO at Traction, a brand tracking and consumer insights platform that helps some of the world’s biggest brands understand how brand strength and consumer sentiment translate into growth, risk, and long-term value.