What’s better than getting people to invest in your company? Getting the right kinds of investors to help capitalize your company.
Enter investor targeting.
Investor targeting helps companies attract investors who are interested in supporting their growth over the long term. Through investor profiling, market research, networking and strategic communication, companies can find people whose investment goals line up with their own. And importantly, targeting helps you identify potential shareholders who might be more willing to invest not just when capital is flowing loosely, but during periods of volatility and uncertainty when capital is hard to come by.
Here’s what you need to know about investor targeting.
The Basics of Investor Targeting
Investor targeting starts with good, old-fashioned detective work (aka investor profiling). This involves learning everything you can about potential investors, including areas such as risk tolerance, investment philosophy, financial interests, etc. Remember: You don’t just want to find potential shareholders that would be attracted to you — you want to find potential shareholders that would be attractive to you.
Once you have this information, you progress to market research. What type of investments do your target investors typically prefer? How do they make their decisions? The more you understand the investors you’re targeting, the easier it will be to construct messaging that will attract them.
Next, you need to start building relationships with the people behind the profiles. Networking with potential investors gives your company a chance to share your story, position yourself as an industry expert and demonstrate your commitment to growth and success.
Consider hosting webinars, Q&A sessions or other events (virtual or in-person) to introduce your company to the investors you’re targeting.
Communicating With Investors
Strategic communication is one of the most important parts of investor targeting. You already know a lot about your investors, but what do they know about you? This stage starts with everyone laying their cards on the table and showing their hands.
When you send clear and convincing messages, you’re able to do more than just show the financials. You can welcome investors into a partnership where everyone has a stake in your company’s strategy and vision.
It’s important to keep your messaging consistent, regardless of whether you’re releasing news, speaking to investors in a meeting or sharing information on your socials. This helps build trust, which is necessary to attract and retain investors.
While technology can help you stay in touch with investors, personal connections are still vital. It’s OK to use your website, social media pages or emails to communicate information, but the occasional face-to-face meeting or direct conversation goes a long way toward relationship building.
Investor targeting works best when it’s part of a bigger plan. It’s not something that can be done once and forgotten about — it should be an ongoing effort. The financial world is always changing, so you’ll need to regularly review and update your approach for you to keep seeing results.
Are You Ready to Find Your Ideal Investors?
Investor targeting takes plenty of planning and effort, but it’s worth it. When you focus on the right investors, build strong relationships and communicate clearly, you’ll attract investments from the people who will help your company succeed!
Are you looking to develop a marketing partnership with an agency who has your best interests at heart? Mischa Communications wants to hear from you! Let’s find a time to talk.