Work in cleantech? Here are seven ways to
improve your investor relations
Despite the hype around Tesla, Arrival, microgrids, urban farms and everything else cleantech, the sector faces some unique investor challenges. Fewer than a hundred professionals are likely to truly understand your stock. A tiny handful will be able to buy and hold it, conveying some long-term trading momentum while encouraging private investors to get involved.
In the face of these challenges, your stock needs the best chance of optimal performance. Here are the seven things you should do.
#1: Develop a Pixar narrative
The animation geniuses at Pixar write each of their film scripts around the same simple structure every time. It is, in fact, a structure that every well-told story fits into. Whilst the projections of your market size, analysis of EBITDA and a detailed exposition of your balance sheet are essential, they are far more persuasive when contextualised inside a perfectly-structured narrative. Here’s an example Edison crafted for VivoPower:
#2 Spy out your audience
It might be easy to identify the top 10 professional investors in your particular cleantech niche. But you’ll need to go far deeper than that. With the rise of passive investing and an explosion of private wealth, the pool of capital under active management might be smaller but it is also far more fragmented. Don’t skimp on the Google and LinkedIn searches as you’ll need to find the smaller institutions, boutiques, hedge funds, family offices and wealth managers relevant to your stock. You’ll also need a plan to reach out to the retail crowd.
#3 Start at the top
The bigger and more respected the institution, the greater the impact their purchase of your stock will have on the rest of the market. So hunt big game first. You’ll need to get networked into the right channels to reach them. After the introductions, suit-up and pitch your persuasively-structured narrative. Also make sure you’re armed with credible equity research that validates your investment case.
Some of our equity research:
#4 Nurture a fan base
Given you’re in cleantech and have big ambitions, your story has potential to be heard way beyond the global generalists and bigger niche funds. Away from the day trading mania, many private investors do buy to hold and while they’re holding will often be loud and willing advocates of companies like yours. Have a trusted influencer introduce your well-crafted investment case to them sensitively. Then ask another trusted influencer to add a dash of research for due diligence. If your business is genuinely exciting, its possible you may now have started to build an army of superfans – hardcore holders and promoters of your stock.
#5 Always be acting
Research, newsflow and other content can create awareness of your investment narrative. They can also convince investors you are potentially relevant to their portfolio. They can even generate active interest. But if you want to get them over the line and take action – you’re best to get that ball rolling yourself. Don’t wait for the activity to happen. Organise as many meetings and webinars as possible with investors. But only with those who are already well-informed and actively interested.
#6 Don’t expect instant victories
Whilst the irresistibility of your investment case is obvious to you, others will need weeks and months to come around. A game changing cleantech story always involves a new and unforeseen future. Repetition and time are needed for the rest of humanity to catch up. So anticipate a non-plussed reaction and line up a new investor relations campaign every time you have significant newsflow. Remember to contact the same investors each time, as well as going after new ones. You often have to generate 8 – 12 touchpoints with an investor before they’ll actively consider buying your stock.
#7 Come chat to Edison
No investor relations company knows cleantech like Edison. We’re #1 in the market. We have muscle, influence, access and a global presence with an army of analysts delivering insight to hundreds of thousands of investors. Take a look at a wide selection of recent decarbonisation content. Then watch some of our Future of Transport conference with the London Stock Exchange. In short measure, these teams could be persuading the market about you.
Thanks for reading these seven ways to improve your cleantech investor relations. If you want to chat further, please drop Ian McLelland an email: imclelland@edisongroup.com or fill out the contact form below.
- Published on 08/31/2021
