InvestorHub is finally doing something we have long championed – making the Investor Relations function a value centre rather than a cost centre.
Founders, Ben Williamson and Rhys Davis transitioned “Fresh Equities” to a subscription model in 2022, focusing on software that enhances direct communication between companies and shareholders. This pivot, discussed in a recent article in The Australian Financial Review (AFR, July 29,2024) allowed InvestorHub to sign over 120 clients from the ASX and LSE within a year. Their innovative platform, combining shareholder analytics and direct communication tools, addresses the crucial need for engaging mid-tier investors who significantly influence share prices. InvestorHub is focused on what has been a neglected area in shareholder communications – providing deep intel to companies on their registry, shareholder location, and shareholder communications with the company. The Company says on its website “Being listed should be superpower. Rasing capital in days, not months. Liquidity for stakeholders and incentives for the team” As UK Managing Director, Alex Stella, notes “we have developed significant IP that allows listed companies to form direct relationships with their domestic and foreign investors. This uniquely empowers issuers to identify who their existing and prospective investors are and then provide them with detailed information and correspondence. The concept is simple but very effective - investors should receive a proper customer experience.” One of the rationales for more effective shareholder communication is to build a strong relationship between an investor and the company they are investing in. An engaged and listened to investor is likely to be a longer-term investor. Every investor interaction is measured, analysed and compiled into an engagement analytics dashboard and monthly report. This assists public companies track the impact of their investor marketing and determine return on investment. The company’s expansion into the UK market and interest from North American exchanges reflect its global appeal. InvestorHub’s AI tool such as translation of investor communications into different languages such as German is proving popular for Companies with dual listing on Frankfurt Stock Exchange. Some of the features on InvestorHub include an Intelligence Hub, Interactive Investor Hub, Communications Hub and a Raise Hub. We have long said investors are a key asset for listed companies and should be treated more like customers. InvestorHub’s features allow for Direct to Investor marketing to attract new investors and engage existing shareholders more effectively. Investor Hub and similar SAAS (“Shareholder As A Service”) tools will play an increasingly important role in companies investor relations strategies. Here in Germany the Frankfurt Stock Exchange and associated Germany exchanges are playing an increasingly important role in assisting Australian, Canadian and UK listed companies increase and diversify their global investor base. Companies like Droneshield (ASX: DRO) are seeing very strong volumes on the two main German exchanges – Frankfurt and Tradegate. German retail investor interest in quality ASX and global listed companies with a compelling narrative, strong business case, and quality management will only continue to increase. We consider local knowledge, local media contacts and local investor and stakeholder networks are, and will continue to be, a vital components of developing and nurturing global investors – especially so in Europe. The optimal IR solution for companies looking to expand their European investor base may well be a collaboration and harmonisation of SAAS platforms such as InvestorHub and local organisations with specialised local knowledge, a deep well of contacts and media partners.
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AuthorMatthew Reynolds is an accountant, management consultant and business development expert living in Germany. Archives
September 2024
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