Investor Relations

1. What processes are involved in investor relations? Investor relations is the ongoing activity of companies communicating with the investment community. While the communication that quoted companies undertake is a mix of regulatory and voluntary activities, investor relations is essentially the part of strock market life that sees companies interacting with existing shareholders, potential investors, analyst and journalists. (London Stock Exchange.) Investor relations van take many forms, for example: meetings with investors company news-releases annual reports websites stock exchange releases interim reports newsletters social media private investor events company magazine trade fairs corporate governance statements newspapers financial newspapers and magazines Fundamentally, the remit of investor relations is not only to create an awareness and understanding of your company amongst the investment community, it is also to help quoted companies gain access to capital and achieve liquidity in, and fair valuations for their shares. http://www.londonstockexchange.com/home/ir-apracticalguide.pdf 2. Who is involved in investor relations? Who are responsible for IR An individual within a company Director of investor relations A department within a company Corporate communications or investor relations Supported by outside consultants communications legal IR Audiences Primary target groups individual investors institutional investors securities analysts Secondary Target groups employees customers community 3. Difference between existing and potential investors? The main drivers and medias used when making investment decision Main medias: Annual reports Interim reports Company websites Newspapers Financial magazines Marketnoze.com Other financial medias.... Main drivers: Expected share price development Expected dividend yield Growth opportunities Past share price development Your investment horizon Timing High-risk Low-risk       How to acquire new investors 1. Understand the Difference Between Private Equity, Venture Capital, and Angel Investing Private Equity (PE) – PE covers a number of investment types that are usually made by private individuals or privately-owned institutions (usually a private equity firm). The money can be used to purchase a company, fund a project, or make a straight-out private investment (SBA). Venture Capital (VC) – This is also a form of private equity, but is managed differently and is usually designed to fund startup companies that have the potential for high growth (very popular with technology companies). Venture capitalists not only provide money, but also business planning expertise and assistance to help startups succeed in its industry (SBA). Angel Investing – Angel investors are high-net worth individual investors (usually former entrepreneurs) who seek high returns through private investments in startup companies. They provide similar startup financing as venture capitalists but usually in smaller amounts (SBA). 2. Government Venture Capital Programs 3. Where to Find Potential Investors Look to Your Business Community  Consider Trade Associations  Talk to Your State Economic Development Agency (SBA.) 4. Making Your Case Do Your Research Fine Tune Your Pitch  Lean on Your Business Plan (SBA.) Sources:  Course Project: Researching Target Markets, Case company: Huhtamaki Oyj London Stock Exchange. IR a practical guide. URL: http://www.londonstockexchange.com/home/ir-apracticalguide.pdf. Accessed 21.04.2015 SBA. Five tips finding and securing private investors. URL: https://www.sba.gov/blogs/five-tips-finding-and-securing-private-investors-your-start. Accessed 21.04.2015