You may have come across the term investor relations when reading a venture capital blog or something and were wondering what it is. Well, here is the answer to your question. In essence, investor relations is all about providing potential investors with an accurate account of company affairs. In the case of startups, VC investor relations is the politically correct term.
A good investor relations strategy is important for any company seeking growth and success. The right strategy is a surefire way of raising your company’s profile and telling your story, compellingly so, to investors to secure funds.
VC investor relations are that much more important because without venture capital, startups can’t even get off the ground let alone grow.
Importance of Investor Relations
The whole point of investor relations is helping investors make informed decisions on whether or not to invest in your venture. Masking the importance of investor relations as the goals of investor relations goes like this:
To begin with, investor relations provide detailed information to investors. Under information, you will have financial information, legal information and management information.
Insights gained from this information will help investors judge your current situation and predict the growth curve of your company to decide if they will invest or not. It goes without saying that the investor relations department has to be integrated into your company’s legal, financial and executive departments to be able to timely provide all this information to the investors.
If it’s a startup you may not have all this figured out yet so your VC investor relations may not be airtight – yet.
In essence, investor relations departments represent your company to the investor so you have to absolutely get it spot on. Investor relations is how you obtain optimum share price reflecting the fundamental value of the company.
What to Include in Your Investor Relations Strategy
A Compelling Story
A great way to improve your credibility with venture capital tel aviv firms is having a clear, compelling story that clearly explains your business as well as how investors stand to benefit from investing in you.
I use venture capital tel aviv firms as an example because VC firms in Israel are the blueprint of VC firms all over the world. In fact, in 2021 alone, Israel’s VC ecosystem invested a total of about 10 billion dollars – what more proof do you need?
As you craft your compelling story, highlight your product without overhyping your company. While at it, clearly show where your company is in your line of work’s hierarchy and ecosystem.
It goes without saying that you need to showcase your strengths but don’t lose purpose trying to be too detailed in this respect.
Finally, explain where you are headed as a company and how you plan to achieve your corporate goals.
An Effective Website
Your company website is the top way of an investor or potential customer learning about your company. That in mind, have a polished, informative and of course professional website. There’s a catch however: ensure the website includes a solid investor relations section.
The investor relations page should include details like your products, your company history, profiles of your executive team, the financial and legal data I had mentioned and last but not least, contact information.
A Crystal-Clear Schedule
Investors are heavy on reliability and any venture capital blog you read will tell you that. If a certain product was meant to be launched on the 25th, that should be the case.
You should be well organized to maintain both market and investor confidence. Post and stick to a schedule with regard to release dates, shareholder meetings and stuff like that.
In the unlikely event that you are unable to stick to the schedule, make sure you inform the investor beforehand, clearly explaining why this is so unfortunately the case.
