Forbes Feature - Overlooked Capital Opportunities Hiding In Investor Conferences
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Brian Krogol, CPA, CFO of Standard Premium Finance (OTCQX: SPFX), gained recognition for earning the prestigious Elijah Watt Sells award.
When planning for investor conferences, teams shift their focus, prepare for weeks, travel all over the country or around the world, attend and present at meetings and then return home exhausted. Once the event is over, life returns to normal as business cards are put away, follow-ups are forgotten and what was productive during the event soon becomes overlooked.
Many executives understand this as an inevitable reality of conference participation, but it doesn’t have to be this way. In fact, my outlook on investor conferences has evolved over the years, and today, my viewpoint reflects a proactive approach based upon lived experience. The goal is to plan thoughtfully and with the intent to make the investment in time and resources pay dividends, personally and professionally. Over the years, I’ve drawn this conclusion: Investor conferences should not be viewed as closing events but rather events to build relationships with potential investors. When executed properly, they create an early familiarity that dictates capital discussions well before they are relevant.
Understanding the Mindset of Investors
From an investor’s standpoint, remember that these conferences serve an important purpose: providing a unique environment that allows for concentrated exposure and connecting on a personal level with attendees. Activities can be up front and personal, allowing investors to see and hear management teams in real time, compare and contrast their stories and understand how they communicate their business models outside of an earnings call.
Astute investors take the time to walk the floor of an industry event. They are often surprised to learn far more from this activity than what is revealed during an investor presentation. There’s so much to observe in terms of what draws interest, who communicates well under pressure and what business models spark curiosity. One-on-one conversations are a great opportunity to really get a feel for the business, well beyond the graphs and charts displayed during presentations. It’s a chance to gather competitive information and discover what makes customers and partners really tick.
Attending industry events should have purpose. When investors arrive well-prepared and open-minded, they are empowered to assess what’s worth further review. An important distinction is that it’s not about capital but about earning the right for the next discussion.
The Most Common Post-Show Mistake
The lack of personalized follow-up is the biggest mistake many executive attendees make after a conference. Investor contacts are not simply leads that require generic emails, communicating unsolicited information or asking for funding too early.
The reality of capital development is different. It’s less about how fast you can get the capital and more about how you can build credibility over time.
Treating Follow-Up As A Financial Discipline
Following up after an investor conference should have structure, and it is crucial to jot down the details of the discussion as soon as possible. At the end of each conference day, ask yourself: What questions were asked? What themes were discussed? What stage of growth is the investor focused on? Take notes now that will help focus follow-up discussions.
The first post-conference follow-up should be brief and specific, with a succinct reference to the discussion that took place. It is important to demonstrate professionalism and respect for the investor’s time. Rather than sending out reams of information or additional presentations, a better approach is to schedule future discussions or make an industry-related observation relevant to the investor’s interests. The initial contact should refrain from asking for funding.
In this manner, the executive is no longer focused on raising capital. He or she needs to be positioned as a thoughtful executive with a deep understanding of the industry and the market. An overlooked benefit of conference participation is the visibility it can provide to prospective investors and the window of opportunity to take the introductions to the next level. The reliability of this commitment shapes perceptions of a company long before any actual capital is invested.
Periodic updates that focus on real progress, thoughtful growth choices and disciplined use of capital steadily build confidence. That familiarity closes information gaps and reduces uncertainty. In public markets, it supports valuation by strengthening investor trust in management’s ability to execute and deliver on what they say.
It’s also important to note that investors don’t require continuous communication. They do pay close attention to signals of momentum, discipline and transparency. Demonstrate your thought leadership rather than selling the investment. Share articles or white papers that you or your team have developed, or relate material benchmarks.
Aligning Timing With Readiness
The most effective conversations about capital occur when timing and readiness are aligned. While conferences accelerate this familiarity, they cannot replace the need for proper preparation. All members of the management team must be clear on strategy, performance and long-term goals before moving the conversation forward.
When everyone is on the same page, it makes subsequent conversations much easier. The team is already familiar with the investor and their context, interest level and nuanced differentiators. This eliminates much of the friction that naturally exists when meeting with an investor for the first time, since there is a foundation of understanding about the business model.
In many instances, the best capital relationships are built months or even years before the actual transaction. The conference simply marks the start of this relationship.
A Long-Term View Of Investor Engagement
There’s no question that investor conferences are an important component of marketing and overall market exposure, providing broad strategic value that fuels a company’s success. A top-down commitment and full engagement from the management team to think long-term and understand the overall value of building relationships will generate meaningful interaction with the investor community. Events are the opportunity to build a network of aligned and educated capital partners.
Be patient, since the return may not be immediate. However, when executed correctly and over time, this network of relationships can have a much larger impact on the overall growth trajectory of the company than the actual meeting itself.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
