investor relations
What it takes to run an IR Campaign

A Complete Guide to Investor Relations for your company

At present, it’s estimated that less than 10% of companies listed have resources for Investor Relations. Public companies are engaging shareholders in a variety of ways today, and stakeholder demands are becoming increasingly demanding. The scrutiny of regulators has increased, and so is shareholder protests. With that in mind and the context of investor relations, (IR) departments have to continuously work to protect the needs of their companies and shareholders.

What is Investor Relations?

Definitions provided as such by CIRI (Canadian Investor Relations Institute), “Investor relations is the responsibility of management that encompasses marketing, finance, communications and compliance with securities laws and sustainability to create the efficient transfer of information between a business and the investment community and other stakeholders, to ensure an accurate valuation of securities held by the company and ensure an efficient and fair capital market.”

Understanding Investor Relations (IR)

Investor relations assure that an organization’s stock traded publicly is traded fairly by distributing crucial information to investors to evaluate whether a company is a suitable investment for their requirements. IR departments are subordinate departments within the public relations (PR) departments. They communicate with shareholders, investors, governments, investors, as well as the general financial community.

Businesses typically begin to build their IR departments before going public. In this pre-initial public offering (IPO) stage, IR departments can help establish corporate governance, perform internal audits of financials, and begin to communicate to possible IPO investors.

For instance, when companies go to an IPO roadshow, it’s normal for some institutional investors to be interested in investing in the firm as an investment option. After becoming interested, institutional investors need specific information regarding the company in both quantitative and qualitative terms. For this, your company’s IR department is required to present a description of the company’s products and services, including accounting statements and financial information, as well as an explanation of the business’s organizational structure.

The Evolving Role of Investor Relations

With the many changes in the equity market (activist investment, ESG, the proliferation of index funds) and the character of investor relations as well as the role of an IRO has drastically changed. The modern IRO must be proactive, strategic, and relationship builder competent in communicating and supporting the corporate strategy and trust with the management team. According to HBR, the IRO job description is changing in four main ways:

· Modern IROs are in charge of explaining the company’s strategies to investors. No longer are they simply describing the corporate policies and strategies; They’re now focusing on why a particular strategy is most effective in generating shareholder value and retaining and attracting long-term investors.

· A lesser amount of keeping track, more gathering of intelligence. The modern IRO should transform into an intelligence agent kind, advancing and identifying the issues that investors are interested in.

· Locating the most suitable investors With so many companies striving to raise capital from investors, IROs should be able to comprehend their peers and stay ahead of the trends in analysts from the buy-side. Additionally, the top IROs are able to locate the right investors for the company and make sure they’ve embraced the business’s strategy.

· The mining canaries. Modern IRO isn’t just financially smart and can comprehend how investors function. Modern IROs have to be in the know about the allocation of talent and capital as well as how they are integrated with the long-term plan of the business. They should serve in the capacity of an alarm system.

The Importance of Investor Relations

Investor Relations (IR) combines communication, finance, as well as marketing to efficiently manage how information flows between the publicly traded company, its shareholders, and the stakeholders. Investors play an essential contribution to development and success. This is why businesses must have solid, honest relationships with investors. It’s here that the investment department is a key component. This article will assist you in understanding investor relations in a general sense and divide it into smaller and more specific segments.

Collaborating with Wall Street

The most senior executives in a company, including CEOs, chief executive officers (CEO) as well as the chief financial officer (CFO), are tasked with numerous tasks they are required to manage every day. To assist in completing certain of these tasks, the IR department is often the first point of contact when a message coming from Wall Street comes in, as well as the channel through which the company can communicate with Wall Street.

It is more understandable when you consider IR as the persona of a business in the capital markets. Of course, shareholders and investors are not the only ones who look at the CFO or CEO as the company’s persona. However, when you look at the most prominent publicly-traded firms’ workings, the IR department is usually at the center of all.


IR serves as a gateway that allows executives and investors to communicate. Let’s look at it a little more.

The initial part of IR’s function in creating channels for communications is called triage. Analysts, investors as well as anyone else with an inquiry or demand to know more about a company typically are directed through an IR department. It acts as a kind of general catcher’s glove. What the IR department can handle the task of passing on, passing down, or transferring to another department it can do without the involvement of the top management. This process is crucial to ensure that executives are not overwhelmed who have other responsibilities to take care of with every request for information placed at the company’s door

The other piece of the puzzle that communicates is translation. IR is the translator of the language Wall Street speaks. We are referring to that IR informs a company’s management on how their company is perceived as a whole by Wall Street and its investors. IR helps to communicate what investors think of as strengths and flaws as well as what they’d like to change and what they aren’t sure about and, ultimately, which will affect an investment’s value according to the current and anticipated demand and requirements of investors.

The 7 Key Aspects of Investor Relations

Making an investment strategy isn’t an easy task, yet it’s crucial for any publicly-traded company. To satisfy the demands of analysts and investors, executives must devise an effective strategy for communicating about earnings calls and guidance, conferences as well as investor interaction. Although it can be daunting, a successful IR procedure boils down to seven key components. If you have a plan to address each of them, you can develop a solid long-term shareholder base and boost the value of your equity.

1. Strategies for Investor Relations and Execution

A well-thought-out investor relations strategy can greatly enhance the attractiveness of investments for your business. If you follow the right plan, you will be able to establish trust with the investment community as well as target the right and knowledgeable shareholders and maintain a solid connection to Wall Street.

2. Presentation and Messaging

A compelling, consistent company message will aid in building trust with investors and influence their perception. From the information you include in your investor slideshow to how you share negative information, every interaction you engage in can potentially alter how investors view your business.

3. Interacting with Investors

If you are looking to build an extensive and solid shareholder base, you’ll encounter a variety of interactions with prospective and current investors. When you understand the buying process and strategies to attract the most suitable investors, you will ensure that you have the most effective team for your business.

4. Working with the Sell Side

Most analysts covering the sell-side of your business will remain your trusted advisor in the long term. If you’re already public or on the verge of an IPO, think about who you’d like to have been covering your business and how you can best cooperate with them.

5. Guidance and Information

Every public company faces the issue of helping investors comprehend their operations. Giving financial advice is an effective method to assist the market in framing its expectations.

6. Quiet Periods

The formal and informal quiet times have different rules and expectations. It’s important to know the best way to approach each type to keep a positive connection with investors during these periods.

7. Earnings Call Preparation

The quarterly financial call is an essential job for a public company, yet companies frequently struggle to make the calls as efficient as they can be. There are, fortunately, several steps you can follow to ensure you are ready for and present an outstanding earnings call.

Specific Requirements for Investor Relations

IR teams are typically charged with organizing shareholder meetings and press conferences, publishing financial information, coordinating financial analyst briefings, submitting annual reports for authorities like the Securities and Exchange Commission (SEC), as well as handling the public aspect that comes with any economic crisis. Contrary to other areas of the public relations (PR)-driven agencies, departments in IR have to be closely integrated with the accounting department as well as the legal department, and the executive management team, including Chief Executive Officer (CEO) as well as the chief operating officer (COO) and the chief financial officers (CFO).

Additionally, IR departments have to be aware of any changes in regulations and provide advice to the business on what can and should not occur from a public relations viewpoint. For instance, IR departments have to manage companies during quiet periods when talking about certain aspects of a business or its financial performance is not legal. The IR department’s primary responsibility is to interact with investment analysts who give opinions to the public about companies as an investment option. Their opinions affect the entire market, and it’s the IR department’s responsibility to manage analysts’ expectations.

The Most Important Elements of Your Investor Relations Strategy

An effective investor relations plan is crucial for any company seeking to expand and succeed. A good strategy can increase the visibility of your business as well as tell your story to improve your standing on Wall Street. A well-designed and well-organized program is essential for identifying and establishing connections with investors who are most likely to invest in your business. However, achieving these goals is a blend of several elements -including a well-written corporate story to a successful IR website. Here are the six essential elements to incorporate within your investor relations plan to achieve your business’s objectives.

1. A Clear, Compelling Story

One of the most important aspects of your investor relations strategy is telling your company’s narrative. A concise, convincing message will increase investors’ credibility and assist them in perceiving your business’s potential and the opportunities. When you write your pitch, emphasize your offerings or services without over-hyping your company. It is also important to demonstrate your company’s role in the larger industry landscape and show its strengths without letting investors down with a lot of detail. In simple terms, outline the direction your business is headed and how you intend to meet your company’s goals.

2. The Plan for Meeting with Key Participants

Your investor relations plan should be based on a well-planned plan for meetings with investors and analysts as well as those who are already involved with your business and the ones you’d like to attract. Consider taking part in conferences, organizing investor days, participating in non-deal roadshows, or hosting visits to your premises. Beware of putting quantity ahead of quality in face-to-face meetings.

3. An Efficacious Website

Investors will be relying on your website to find out more about your company. Therefore, you must have a well-designed professional, informative website with a robust information section on your investor relations. Like your investor deck, the IR pages must contain precise information about your business’s mission and products. They should also display your background as well as the profiles of your board members and executives as well as financial information, stocks details if you’re publicly traded as well as the names of analysts that cover the company, and contact details.

4. A Thorough Understanding of The Investor’s Perceptions

An independent audit of perception that permits analysts and investors to share their candid opinions about your business freely will allow you to determine the best way to position your business within the market.

5. A Schedule That Is Firm

The company’s image must be well-organized to keep the confidence of investors. Small lapses or changes in the plans could cause doubt between investors and analysts. Adhering to and posting a schedule — which includes conference dates, earnings release dates, and shareholder meetings, is one method to communicate confidence. A schedule can also aid in planning the coming year and figuring out what public appearances make the most sense.

6. A Plan to Deal with Bad News

Transparency is essential when it comes to investor relations — particularly when it comes to issues. Even a stable, well-managed business can be hit with negative financial results or even an emergency. How you deal with it can affect the attitudes of investors towards your company.


An Investor Relations function should not be considered an expense but a valuable addition to a company’s corporate governance framework.

Want to know more?

With over 50-years of combined financial management and marketing experience combined Numerian Capital can work with you to help manage your capital raise, investor relations, investor acquisition and digital media campaigns. Within its ecosystem and platform they can help with the legal, investor acquisition of (Accredited Investors) and provide a full platform that covers cap table management, portfolio management, shareholder management, compliance management as well a broker dealer management for KYC and AML. Numerian Capital has the all-in-one platform empowering private capital markets. Contact them for more information today.

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