Investors are more likely to get interested in a company that’s already gained some traction and is visible on the market.
You need capital to grow your business, but you also need like-minded investors.
If your company is using creativity to solve a problem while making a positive impact, then you likely have a unique and compelling story. You need a strategy for getting your sustainability story in front of impact-focused investors.
Colton Alexander believes in a “growing capital” process where you take steps to build relationships with investors before you are ready to raise money.
A critical element of this strategy should be public relations.
NOTE: Speak with a licensed investment banker about whether you can reference a specific deal in your public relations content. It depends on the offering you are issuing. In this post, I am talking about using PR not to market a specific deal but to build up your brand and get investors excited and excite investors about your purpose-driven company.
Step 1: Understand your Investor
The end goal of your Step 1 marketing and PR efforts is earning the attention and confidence of investors. The focus should be on sharing interesting information to your target investors where they consume content. But to do this, you need to know your target investor. Is your ideal investor an impact-focused venture capital firm or a family office with sustainability goals? You may also want to consider angel, strategic or institutional investors depending on your company.
Within these categories, get more specific about the focus areas, check the group’s sizes, and consume information such as traditional media, blogs, podcasts, and YouTube channels.
Step 2: Understand the Publication
After defining your investor persona, the challenge is finding alignment between your ideal investor, relevant publications, and your company’s strengths and unique story.
List 10-15 publications that might be a good fit for your brand and your investor persona. Next, review recent content to get an idea of the types of stories that might be appropriate. Are there any topics that your founding team excels at that might interest the readers or listeners of these publications? Do they fit within the typical style and theme that the host/author uses?
We have a client who is an industrial 3D metal printing company. The company’s technology has the potential to make an impact by helping manufacturing companies to reduce waste and streamline supply chains. The CEO has extensive experience in additive and traditional manufacturing.
Because they were targeting strategic investors for a capital raise, we assisted the CEO in reaching out to podcasts geared towards manufacturing executives to talk about how integrating additive manufacturing into traditional manufacturing processes can improve cost and lead times. The CEO educated the audience through a thoughtful interview showed the company was a thought leader in the industry and gained visibility with the right investors.
Step 3: Personalize your Story
Once you have gotten to know the investors you prioritize and found the outlet that will reach those investors, personalize your perfect pitch.
- Tell a compelling, credible, and concise story.
- Grab investors’ attention in your first paragraph and work to hold it as you describe the product, opportunity, and team.
- Balance enthusiasm with reality; investors will see right through over-inflated promises.
- Take the time to practice, simplify your messaging, and only keep elements that build up your business. Leave everything else on the cutting room floor.
Step 4: Most importantly – Keep Going
The goal is to encourage investors to look closely at your deal. Marketing expert, David Meerman Scott explains that the line between marketing and PR is blurring. All is not lost if you have trouble gaining traction with journalists and influencers. Producing your content through blogs, infographics, and white papers can also be effective.
Do the right thing, and let your hard-earned reputation connect the dots.
At Colton Alexander, we believe in a strategic, well-rounded approach to growth capital. We help sustainability-minded entrepreneurs tell their stories to impact-focused investors and other stakeholders. Our activities empower your company’s growth through preparation, planning, and practice.
Securities transactions effected through AltSourced Solutions, member FINRA/SIPC
Alex Kramarchuk is a licensed investment banker and Managing Director of Colton Alexander, LLC. Colton Alexander provides strategic advisory services to public and private sector issuers through private placements of debt and equity, M&A, private markets research and advisory. Alex holds Series 7, 66 and 79 FINRA licenses. He is passionate about contributing to society through the formation of capital and its role as an engine of commerce in today’s market drive system. Colton Alexander, LLC is an affiliate of AltSourced Solutions , broker-dealer.
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