RTC #4: Investor relations is not fundraising

Why today’s issue is valuable to you

Building sustainable investor relations (before you need the capital)

• Receive the Road-To-Capital Investor Engagement Tracker and start engaging and building a strong investor network today 💥

• Understand the difference between “Investor Relations” and “Fundraising”💡

• Hands-on guidance on how to build the right relationships before you need the capital and start fundraising 💰

• Start connecting, I have compiled a list of relevant events for you to start your investor networking 🤝

Stay up-to-date on what is happening

• Ongoing tracker for female-founded start-ups in Europe💰

• Who will actually, really, finally, maybe go public in 2024 📈

• Remember the start-ups we lost in 2023 🪦

Before we start, first things first:

Straight from the ‘Road-To-Capital’ toolbox for you, spot on for today’s topic

Investor relations is not fundraising 😲

Last week I came across a discussion on LinkedIn on the key success factors (early-stage) founders should focus on this year.

When it came to fundraising, the views from the investor side spoke a clear language

• Importance of existing relations and continuous communication

• Success factor: right network and access to it

• Start the relationship early on and from a position of “strength” and not a “need”

The concept of building up a relationship with a future investor

Before we are diving into today’s hands-on step-by-step approach, let us first establish the differences between “Investor Relations” and “Fundraising”

Investor relations with no advisor vs advisor

Remember the words Peter Lasinger shared with us in a previous issue “[Advisors] make sense to structure a process or work with more institutional investors” 💡

First lesson: There are two situations depending on where you stand on your “Road-To-Capital”

• Early-stage/smaller companies: you don’t have any advisors and the fundraising is (should) solely be driven by founders/ management (I cover this today)

• Later-stage/larger companies: you are working with an external advisor to support you/your team on the capital financing (I cover this in one of the next issues)

Focus today: Investor relations for early-stage/smaller companies (no advisor)

I have outlined a 5-step approach on how to get you going and to have a structured process in place. The steps might look pretty simple and basic but try it out and follow the guidance (and the RTC template) and you will notice the difference that you have created (latest) when you start raising funds. 👇👇👇

Step 1: Identify the right investors for you

👉 The first step in effective investor relations is identifying investors whose investment focus aligns with your business case. Do your research on:

• Their investment thesis (this means: stage, ticket size, geography, industry/business focus)

• Past investments

Create a long list of all potential investors that fit into your assessment and highlight your top priority investors (“dream investors”).

Step 2: Make sure you make a strong impact

👉 First impression is key - so you better look good. You don’t need to have a full pitch deck ready but you should

• Take the time and create a convincing LinkedIn profile for yourself and your company

• Be able to tell your business model and value proposition in 20 seconds

• Have KPIs and the key metrics ready

• Know the key milestones on your roadmap

• Understand your cap table

Step 3: Getting in touch

👉  Maximize warm intros: Take some time and go through your network (+ contacts of your contacts in LinkedIn (!)) and tick off each investor where you can find somebody who can make you an introduction.

For the ones where no warm intro is possible

• You are better well-prepared and have a specific and individual cold approach (see step 1)

• Use something personal (eg investor is attending a certain conference and you can use this by suggesting a meeting - even if you do not attend yourself in the end 😊)

• And/or be creative (see below)

Step 4: Nurturing the relationship

👉 No need for regular update calls following your intro call but make sure that they do not forget you and that you stay present

• Create a monthly/quarterly update email and have them on the “Update List” (examples for templates here)

• Let them know when you are attending one of the key conferences and/or you are in their town

Step 5: Finally, stay on top of your game

👉 Structure keeps you organized and assures that you are on your “A Game”

• Keep track of the communication/meetings

• Make sure the next steps are clear and executed

• Include them on your “Update List”

Start connecting 🤝

I have compiled a list of the selected event highlights for 2024 to start your networking efforts right away 👇 

📅 Upcoming Events in 2024

• World Economic Forum Annual Meeting | Davos, Switzerland | Jan 15-19

• sTARTUp Day 2024 | Tartu, Estonia | Jan 24-26 | Start-ups

• 4YFN | Barcelona | Feb 27-29 | Start-ups

• 0100 Conference DACH 2024 | Vienna | Feb 28-29 | VC & PE

• SuperReturn Private Credit Europe | London | March 11-23 | PE & Debt

• GPC Conference | New York | March 25-27 | PE

• Private Debt Investor Europe Summit | London | May 7-8 | Debt

• SuperVenture | Berlin | June 4-6 | VC & PE

• Bits & Pretzels | Munich | September 29 - October 1 | Start-ups

• Techcrunch Disrupt | San Francisco | October 28-30 | Start-ups

• WebSummit | Lisbon | November | Start-ups

• Slush | Helsinki | November 30 - December 1 | Start-ups

👀 What I found useful to read this week

This was issue #4 - next week we will have another stellar guest in our fireside chat: Peter Windischhofer (Founder of refurbed) 🌟🌟🌟

But do not worry, I will continue the topic of investor relations and the fundraising process in more detail over the next months covering

• Investor relations for later stage situations (including an advisor as part of the process)

• The actual fundraising process (with and w/o advisor) and I will also share another template from the ‘Road-To-Capital’ toolbox making sure to have you covered from A to Z (“Approach start” till “(no) Zero balance” )💰

Know a friend/colleague who could find this helpful?

Invite them to join ‘Road-To-Capital’ and with only one referral I will also send you the “RTC Capital Scoop for 2024” 👇👇👇

Cheers,
Stephan 👋

Issue #4 | 09 January 2024