Why Investor targeting is Important to Create more Values for Your Company?
Investor targeting is the process of identifying, addressing, and engaging investors who are active in your sector to create the most value for your company. Targeting the right investors into your sector is crucial to raising your corporate profile and expanding the shareholder base. Investor targeting is very important for new businesses as well as for micro and small-cap growth companies that are not a popular name among investors. Investor targeting helps you to identify the active investors in your sector of business but may not be familiar with your company.
Why Investor Targeting Important?
Effective investor targeting can open the opportunity for new pools of capital to draw more investment for the growth of the company. It also establishes the proactive engagement of investors to maximize shareholder value. This also helps you to gain access and understand your own investor data and analyzing it. It will help you in the process of profiling investors to identify a good fit for your company. Once you understand the profile of your investors, you can address them in a thoughtful approach. In addition to understand your own investor structure, investor targeting helps you to identify who is investing in your competitors.
How to Target Right Investors?
A thorough and thoughtful approach is required to the most benefits from your investor targeting process. Here’re some of the tips on how to target the right investors for your business:
· Get the help of third-party databases such as IPREO or IR Insight to identify and find the list of investors based on common metrics. Analyze and understand this data to get to know your targeting investors.
· Understand your own investor structure and analyze the extensive list of investors, meeting history, and working experience with other companies in your industry.
· Understand investor style and metrics and analyze investor ownership to do thorough research.
· Attend conferences to get the opportunity to meet between 10 and 20 investors in one place over a day or two. Make sure your strategies are well planned and analyzed before talking to investors in your industry.
In the process of targeting investors, you can take the help of any investor relations consultancy to know the right path to find new investors for your business. Investor relations consultancies have expertise in how to find and target the right investors for companies. They help you to understand the right composition of your shareholder structure and which investors would you like to target. An investor relations consultancy will help you identify potentially interested investors into your stocks and how to address them. If you own a small organization and looking for the right investors, you can hire any investor relations consultancy for the investor targeting process.