Abstract: Is media coverage beneficial for startup to obtain funding from VCs? What factors would affect startups to strategically transmit information through media? We would like to study the role of communication through mass media outlets, like newspapers, in the setting of venture capital and entrepreneurial firms. Media coverage has an ambiguous effect on the future performance of entrepreneurial firms. Media exposure grabs both the attention of potential consumers-which could expand the potential market-and VCs, which increases the likelihood to obtain more offers from venture capital. Therefore, it is supposed to increase the bargaining power of startups. However, more media exposure increases the risk that core ideas/business models that startups exclusively rely on would be stolen by followers or competitors in the market, which would leave the entrepreneurial firm in a disadvantaged position. The aim of this project is to quantify this trade-off when entrepreneurial firms are trying to obtain investment from VCs for the first time using an instrumental variable approach.