RE: Things to come?7 Jun 2023 08:48
Back in the day.....from 2018, posted by our hero Gerry
The secret to building a supportive Small-Cap investor community is easier today than it ever was
Gerard Brandon
Gerard Brandon
August 14, 2018
In response to an article in IR Magazine about the prejudices facing small-cap companies on the AIM Stock Market, it is important to point out that once on AIM, EIS and VCT funds have little to do with day to day trading. Emphasis has to be on providing relevant information on an ongoing basis to retail investors if you want to grow your shareholder base.
Today, social media plays a key role, and a targeted following in your area of expertise and the financial markets, on social media platforms such as LinkedIn, Twitter and even Facebook, with recommendations from respected commentators in your industry, adds value, and more importantly, trust.
Write your own content and contribute to your investors knowledge
With less than 1% of LinkedIn contributors writing their own content, this is an unexploited area worthy of pursuit for the small to medium company’s C-Suite executives to gain exposure for your company and a supportive following. It provides an ability to move from just the facts, to the back story of your company as well.
Let your investors know you are a real person;
Let them know you are like them;
Let them know that you were where they are; and,
Show them where you are now, and hopefully where they aspire to be.
Today, investors see less of the printed press and more information online than they ever got from the printed press. Financial reporters play a meaningful role in developing your company story, but sadly they are not as useful to reach investors as they were 10 years ago.
“A story has no beginning or end: arbitrarily one chooses that moment of experience from which to look back or from which to look ahead.” Graham Green
It is important too that as a small-cap company you see your story as a journey and in order to enjoy, or make the most of the trip, you must take passengers and companions along with you. So keep those you presented to on the roadshows updated with news, even if they are EIS or VCT. While they may not help the liquidity of your shares on a daily basis, perhaps for a future corporate transaction or a secondary funding round as the company grows these are the places you would expect to reach out to. Don't wait for that funding round to build a relationship. I have known many investment fund managers since 1998, as I prepared for my first IPO, and while some have invested in that IPO or secondary round, many did not.
Investors want to know the people behind the companies they invest in
However, many of them may know who I am and what company I am involved in because of my social media updates and online relationship posts over the years.
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