Three Ways For MicroCaps To Target New Investors
In early September, IR Magazine shared a Q&A with Peter Sidoti, founder, chairman, and CEO of Sidoti & Company. One of the questions was “How should small-cap IROs go about targeting new investors?”
Sidoti shared three ways for small and micro caps to target new investors;
1. Work with a first-class investor relations person or firm.
2. Attend conferences targeting institutional investors and family offices.
3. Get research from a respected source – even if you have to pay for it.
Learn more HERE.
First off, great blogspot, it has a lot of potential to connect all walks of life in the industry such as bankers, lawyers, transfer agents, private investors, traders, etc.
Sidoti is a great organization and they put on one of the most intimate conferences in the industry. I recommend all industry players to attend.
However, let me say as a portfolio manager of a private investment fund that we seldom, if ever, ask a small-cap company who they are covered by as we all know institutional research firms dont write unbiased, non-paid, research on small-caps as they are restricted to doing so.
Further, most conferences dont allow true small-cap investors to even attend their conferences (ie LD, SeeThru, Roth) for fear of any fallout associated with such invesment. Lastly, I challange anyone reading this to show me a 13G/D filing from a family office showing an investment made from a conference they attended or a family office investment in a small-cap company period.
I recommend working with a banker, finder, or IR firm to find investors and focus on the term of the note or valuation of equity investment. Rule of thumb, if you habent found what your looking for after 90 days, it doesnt exist.
I am happy to articulate more on “How to Raise Capital for your Small Cap Company” but want to test the waters first and see how many are actually reading this blog.
PS – have you always allowed comments or is this new? It should be encouraged as i beleive it will greatly increase awareness and banter amongst key members of the small-cap industry.
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