The “Haves” and the “Have Nots”: How Investors are Evaluating Small Caps
With interest rate cut sentiment in flux, investors are finally diving back into the world of small caps. Even so, investment right now is stratified. Those receiving the lion’s share of eyeballs are those that can effectively communicate how their financials support their investment horizon. We’ve compiled a few tips from our recent meetings on how micro- and small- cap companies can capitalize on the renewed interest:
Rehearse Messaging: A strong investment story is critical to maintaining investor’s interest. Incorporate your financial situation into that story to show a clear path forward to profitability.
Emphasize Runway: With delayed rate cuts, investors are mostly concerned about whether a business has a stable flow of cash to draw from. Even if your company isn’t currently profitable, highlight how you are well positioned to weather economic uncertainty.
Send Follow Ups: Unfortunately, it’s simply a fact many investors are wary of the small-cap space. Even if your meeting doesn’t lead to an immediate investment, make sure to communicate any developments you have following a meeting. You never know what could spark a more intense interest.
Interested in starting conversations with the right investors? Reach out to Graham Farrell (Graham.Farrell@Harbor-Access.com) [in Canada] or Jonathan Paterson (Jonathan.Paterson@Harbor-Access.com) [in the US] to learn more.
