Investor list building is what all clients want from their advisors. Many imagine it to be the Holy Grail that will eliminate market volatility, calm trade war uncertainty and propel them to untold profits.
The problem with this idea is the nature of list building and attracting investors has fundamentally changed.
Small caps, mid-caps and blockchain companies are facing the same business reality as an Etsy shop owner. In modern marketing your digital footprint matters.
A study from Brunswick found half of the investors now use digital platforms to learn what CEO’s are saying.
Younger investors and analysts are also using social media not just for research but to make investment decisions: of those aged between 20 and 29, 44 percent have used Twitter for this purpose; 29 percent have invested based on something they learned on Whatsapp, and 20 percent acted based on something they learned on Reddit.
Digital media is ingrained in how investors conduct their research
The fact is investors, analysts and traders increasingly want to see a strong and relevant online presence. This is bad news for half of the companies seeking to grow their investor lists. doing it wrong.
Many blockchain and traditional small caps are simply doing it wrong.
I’ve had the opportunity to look at hundreds of small-cap and blockchain websites. Senior executives are not using digital and social to reach and engage investors. The websites are stacked with stock photos and blandness. The basics of providing an irresistible offer in exchange for a visitors name and email address are virtually non-existent.
These companies are waving the white flag at utilizing digital assets to build relationships and convert online traffic into qualified investors. Their game plan may consist of renting email addresses a list broker.
Small caps are publicly traded firms with a market capitalization of less than US$300 million. Blockchain companies offer a mix of digital securities and Security Token Offerings (STOs). Investors are showing an increasing interest in participating with these types of companies.
In the Grayscale Annual Bitcoin survey more than a third (36 percent) of U.S. investors would consider an investment in Bitcoin, representing a potential market of more than 21 million investors in the general population.
Investors considering Bitcoin, small caps, blockchain-powered digital securities and STOs are going to conduct some level of online research. A percentage of these prospects will make decisions based on what they find.
There are many sources available. Checking the sentiment in forums, chatrooms, Telegram and Discord groups is part and parcel of generating buzz. Even institutional investors will move if a particular stock or new crypto goes viral on Twitter, Facebook and LinkedIn.
VIDEO: An investment officers view of social media
So what can be done to improve the chances and pull victory from the jaws of digital defeat? Focus on positioning your company.
There are market and price volatility. There are negative scenarios and bad actors. But there are also opportunities and surprises that can be uncovered that attract investors. Don’t wait. Get started.
Here are seven tactics that attract new investors with digital
Avatar me
Know the avatar of the investors you want to reach. Which social platforms are they active on?
LinkedIn is the most favoured social platform for professionals. With over 500 million members (300 million active each month) you have to filter in order to connect. Things like a branded company page, identifying employees and a regular posting schedule are essential.
Peeping in
Your website is an open window into your company.
The initial digital impression can work for your benefit or be a disaster. I’ve looked at hundreds of small-cap websites that have the same format. Stock photos, boilerplate text and the same menu options. Show some creativity to improve your conversions.
Googled you
What are the keywords related to your industry and how do you rank for them? Investors often look at big-picture industry information, announcements and trends. If you have specialized products then you should be showing up on the first page of Google and other search engines like Bing and even YouTube.
A strategic approach is key to winning
Join your network
The CEO and Founder need to have a strong digital profile. In addition to the company website, LinkedIn is a great place to start. Optimize the content and give it a real feel.
A Twitter handle is another option (today even the POTUS tweets). The point is to personalize the brand.
Click IR
News flash. No prospective investor is combing through all of those PDFs on your Investor Relations tab. They also won’t read all 47-pages of your whitepaper. Sell the sizzle, not the steak. Re-purpose that content into bite-size chunks of delicious information. A bonus is the content is already regulatory compliant.
Know your analytics
Check your Google Analytics to see which platforms are referring traffic and links to your website. Also, dig into the demographics and interests of the people hitting your site. Determine which pages they come in on and where they exit. This will further validate your avatar and can provide a basis for advertising.
The money’s in the list
Building a huge list of qualified investors is a pot of gold. But first, you have to create an effective funnel. Attract website visitors onto your email list with an irresistible offer. Nurture them with follow-up emails and broadcasts. Lead them to make an investment decision in your favour.
Summary
Today it is harder for small public companies to get attention and raise capital. Social media provides a proven way to create community, engage and activate your audience. Speak directly to the people who care the most about what you’re doing. A weak digital profile puts your company at a disadvantage to competitors who are more active on social platforms.
A strategic approach is key to winning.
Recognize the convergence of traditional roadshows, analyst calls and shareholder meetings with digital marketing. A solid digital marketing strategy is your blueprint.
Use it as your GPS and guide as much traffic as possible to your online properties. This approach will enhance your website, support investor relations and position your brand as a leader in digital communications.
Next steps
Many blockchain and small-cap companies find it cost-effective to outsource this work to a dedicated professional. The time and talent are typically not in-house to make it happen.
What are you waiting for anyway? Social media provides an opportunity to expand your potential investor universe into the millions. Done effectively you can grow your list in the short term and build value in the long run.