Being Public: communicating with the new target group of investors
The research work has been done, the market is growing, staff are motivated and the political decision-makers are putting their weight behind sustainable and environmental products – but the liquid assets to develop the technology ready for the start of volume production, to launch it onto the market and to finance growth are still lacking. It is at this point at the latest that investor relations need targeting. The right form of finance has to be found. Is it better for a company to welcome on board a venture capitalist at this stage? Would a management buy-in be a good idea? Would an Initial Public Offering (IPO) deliver the liquidity that the young company needs to expand? Is raising capital the most effective way forward?
No matter which means of finance the company opts for, the biggest corporate communications challenge it faces lies in developing an easily understandable equity story. This is the only way of winning new investors, affirming the investment decisions of shareholders and partners and convincing fund managers and analysts of the sustainability of the business model. But investor relations mustn’t just be restricted to the financing stage because using external funds as a source of finance forces the company to adopt a transparent and active communications policy as the trust of the financial market has to be won time and again. A successful IR programme must address the following issues:
- How can a company’s past successes be projected into the future?
- Is the corporate strategy fully understandable? What is special about it?
- Does the business model promise the necessary profitability? Return on Investment (ROI) is the investor’s main priority.
- How can the cleantech company communicate its vision, philosophy and corporate culture and effectively stand out from the competition?
- How can a continuous and target group-specific flow of communication be established?
Maisberger assists cleantech companies in the development of a sustainable equity story and in communicating with all relevant players on the financial market. In doing so we leave you free to concentrate on developing your business model and sales strategy.