What is Investor Relations for Private Companies?
While Investor Relations may seem like an all-encompassing term referring to the relationship between investors and the company that they invest in, in practice the definition is more precise.
Investor Relations professionals are tasked with providing investors with up-to-date information on company affairs, so that private and institutional investors stay informed on the goings of companies.
Considered to be a sub department of Public Relations, Investor Relations works to create holistic and financially beneficial communication between investors, shareholders, and the general financial community.
Investor Relations professionals’ are always aware of the key corporate information including in depth knowledge of the product and services offerings, the latest updates on the company’s operational and financial performance, as well as its key performance indicators.
This information is then compiled and presented in a coherent manner so that investors understand how well the company is performing. A description of the company’s financial statements, financial statistics, and an overview of the company’s internal organization is made available to investors. This helps to paint an accurate picture of the company’s private internal workings.
Two-way communication, as opposed to a one-way flow, is essential to investor relations in the modern economic climate that is characterized by periods of high volatility.
Investor Relations has been equated with full disclosure – where only important or relevant information is shared with shareholders. But that is no longer the case.
With the rise in popularity of Alternative Finance Platforms like regulated equity crowdfunding, investors now want, need, and expect so much more: consistent and honest communication between companies and their shareholders. In other words, they want to see full transparency.
It is the responsibility of Investor Relations professionals to integrate finance, communication, marketing, and securities law compliance to enable effective communication between the company and relevant parties.
Why is communication so important? Through transparency, investors are able to get a grasp of the true value of a company’s business. Therefore, the primary goal of Investor Relations is to help investors understand true value of the company and its key performance indicators.
For Investor Relations professionals to be efficient and effective today, they must employ a number of tools to accomplish the above goals and achieving effective two-way communications with investors.
- Excel sheet to manage shareholders/investors
- Sales automation tool
- eMarketing tool
- Meeting Planner
Time is wasted in trying to combine the data from each of these fragmented tools. KoreConX solves this problem by providing Investor Relations professionals one tool to do what normally takes more than 4. Register today https://bit.ly/2izdVf7
Overview of the features the IR Module will include:
- Manage Current Shareholders
- Manage Potential Investors
- Provide free Portfolio Management tool for investors
- Meetings (AGM, Shareholders Meeting, One-on-One)
- Reports (Monthly, Quarterly, Annual, Information Circular, Proxy)
- Media Releases
- Social Media
- eVote (ability for your shareholders to vote online)
and much more
Here is what IR professionals are saying:
“I have been providing investor relations services to private and public companies for 2 decades, and for the first time I’m seeing a tool, KoreConX IR Module, that provides me everything I need to manage shareholders, meetings, reporting and media releases through a single dashboard. This is the tool for every person working in an IR position today.” Kai Blache Investor Relations Professional, Digitz, Cray Pay, TicketSocket, Slyde
Register to pre-launch program. https://bit.ly/2izdVf7
Jofre is one of the top 10 global thought leaders in Equity Crowdfunding, a Top 10 Fintech & Blockchain Influencer and a Top 50 InsureTech Influencer. Prior to co-founding KoreConX, Jofre founded SaaS-based, multilingual translation portal, BabelFish Corp. where he led a team of more than 135 individuals to provide multilingual solutions to 7,600 contractors around the world. He was awarded the Vision 2012 Businessman of the Year by the Toronto Hispanic Chamber of Commerce and is a globally sought after speaker on the topics including equity crowdfunding, blockchain, FinTech, compliance, shareholder management, alternative finance and RegTech.