The New Digital-First Investor Journey
KEY TAKEAWAYS:
The investor journey has become digital-first, that begins and (sometimes ends) with a company's website.
A well-designed and regularly maintained website with clear messaging and storytelling is crucial in attracting investors and gaining a competitive advantage.
Video content is an essential component of a company's digital DNA, and not having it could result in losing upwards of 50% of potential investors.
Companies should focus on distilling their narrative into essential elements, using sharp and simple language, and be direct in messaging.
Amplifying a company's brand through video, social media and other touchpoints can builds trust and engagement with investors.
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About a year ago, we heralded the return of in-person events after months of Zoom. The ‘white of the eye’ benefits—engagement, relationships and the higher likelihood of leaving with something tangible—were indisputable. No more. Blame it on gains in productivity, flexibility and time—a testament to the savage impact of remote work.
Remember when management used to meet in-person with the buy-side, then as a result of Covid-19 virtual meetings became the norm, quickly followed in 2022 by the mutually inclusive advent of hybrid events? Now, the preferred meet up takes place digitally. Welcome to the new digital-first investor journey where initial awareness begins (and sometimes ends) with your website.
Competitive pressures, right now are fierce. With thousands of small caps clamoring for the eyeballs of investors, they now hold material sway—something that has not been seen since well, Meta changed its name in October 2021 (much to the market’s dismay—over the course of 12 months, Meta lost 75% of its value but, has since recovered nearly 50% of its value).
Putting this into perspective, it’s easy to see why a cursory review of website or your socials could have such an outsized, positive influence on investor’s decisions to talk with you. It’s not just about shiny first impressions, but the whole online experience.
We talk with high-net-worth individuals, qualified institutional buyers, hedge funds, and family offices, every day. We track awareness, performance and competitive advantage vs. peers. What we found is companies that don’t allot the resources to design, build and maintain a high-quality website with clear, strong messaging are stumbling and missing out on key opportunities. Telling your story through video, too is a crucial component of investor education, without which, you could lose upwards of 50% of potential investors who dote on average 1-2 minutes on your investment thesis. Lesson here is: if you don’t have a video strategy, you need to get one.
Investors, like all of us, crave a good story. Distill the narrative down to its most essential elements. Be aggressive in your marketing which means, an up-to-date, well-organized website along with marketing materials. Companies who can smartly weave strategic messaging with emotional context plus, ongoing curated social media postings, establish a firm foundation for educating and retaining investors. Make each social touchpoint a little different, unique, or memorable. It goes a long way to helping you slice through the noise as well as inspiring confidence.
Key to-do’s:
Look for ways to rework your thesis into sharp, simple words and shorter phrases.
Reduce the number of adjectives and use action verbs instead, get rid of the passive voice, and for goodness sake, kill off pesky adverbs, weasel words, anything superfluous immediately.
Be direct, and own it. The truth is, writing shorter, more concise content for the eyes of investors takes more time than just using numbers and data.
Awkward moments and mindless small talk, be damned—amplify your brand’s humanity for better engagement. If we’ve learned anything from the last several years, your company needs to smile more. Smiling builds trust and empathy. Plus, it boosts happy hormones (namely, oxytocin) which creates a positive feeling. While face-to-face meetings will never go away completely, they are no longer the first choice for the buy-side, especially if you are an unknown entity. The new reality is digital.
If you need some help sharpening message or sprucing up your website, we’re always glad to help.
