How Technology is Changing Investor Relations for Public Companies
Established in 1602, the Amsterdam Stock Exchange is considered the oldest exchange in the world. It goes without saying that the same week the exchange opened, the first “investor relations” job was created.
Very little has changed since 1602 on this regard.
Public companies hire individuals and firms to broadcast news to their target investors. This news is intended to spark buying of their stock, increasing their liquidity and giving confidence to investors that they will be able to sell the stock when they choose to reap the rewards of their investment.
Tools available for broadcasting public company news include newsletter services, newspaper editorials, paid advertising on radio, tv and internet, fundraising service providers and investor relations companies. Each service offers a connection to potential investors and as such, validates its costs through share price performance metrics.
In the high stakes game of investments, fees for these services are similarly high. Often, service providers require minimum contracts of 6 months, exclusive finder’s fees payments for bought deals, unrestricted shares in the client companies and performance bonuses throughout.
Until recently however, technology hasn’t been leveraged to create efficient and inexpensive access to verified investors.
One such technology platform is Sploda.com. Sploda is unique in that it automated the first stageof the due diligence process, enabling investors to gain lead flow and insights into public companies based not on press releases but on real due diligence data.
Five minutes to sign up on Sploda.com (without charge) and after a quick verification process, investors automatically begin receiving due diligence summaries of companies that meet their unique investing criteria. Investors can open a fire hose of lead flow or tighten their filters and receive one or two leads per year. The filtering technologies are powerful when data like due diligence is available to be leveraged.
Interestingly, Sploda is 100% free for investors. Investors receive the due diligence summaries and contact information for their matched companies should they wish to learn more directly. Companies do not receive the investors’ contact information but are notified of matches, types of investors and their geographic region.
Technology platforms like Sploda.com earn their monthly subscription fees from companies who want to broadcast their investment opportunities to relevant, verified investors. A single month of unlimited matches to a global network of investors is less than lunch with a single investor target ($29.99 USD). And Sploda.com does not charge finder’s fees or require any contracts.
Targeted networking platforms are not new, just new to the quiver holding investors’ arrows.
In fact, the online dating industry proved that pre-qualified lead flow creates better odds for constructive relationships. Mismatches between people who do not agree on kids, smoking, drinking, travel, language and social interests are now managed using algorithms intended to improve the networking process for everyone.
Sploda.com brings the proven “online dating” model to the world of investors and companies seeking capital. And it is the least expensive, most efficient method for public companies to connect to verified investors anywhere on earth.
Investors will continue to benefit from listening to pitches, attending promotional events, subscribing to newsletters, and engaging other lead flow and analytic services. However, incorporating lead flow and analytic technologies like Sploda.com are no-brainers when it comes to leveraging efficient and inexpensive resources to make more money.
Visit Sploda.com to learn more.