In the current challenging economic climate, it’s no surprise that companies have increasingly been turning to public markets to fundraise – with £10bn having already been raised this year. This trend is likely to continue in the foreseeable future.
AIM has played a large role in this, helping raise £2.9bn of capital – up from the £2.1bn raised over the same period last year. So clearly there is investor appetite, but the crucial point is that companies vying for funds are going to have to work harder to stand out from the crowd.
Competition for investment is intensifying
Why is this? Two reasons. First and most obviously, investors who entered the market to ‘buy the dip’ can now choose to invest in an ever increasing number of companies looking for capital. But second, increasing numbers of individual retail investors (as opposed to institutional investors) are looking to invest.
Indeed, in the last few months retail investors have represented over 20% of all volume of trade in the FTSE All Share – a figure larger still in the AIM Index which has always sustained strong retail support.
But what this means is that companies trying to attract a wider array of potential individual investors need to build a much broader profile than they have traditionally done. And that means they need an all-encompassing PR strategy.
Greater exposure – the key to fundraising success
A firm hoping to successfully fundraise needs a clear, compelling story to tell. They need to be visible to investors. And they need to be seen as leaders in their field – not just yet another company looking for capital.
One of the ways in which to achieve this is through exposure to leading investment and adviser media, as well as broader business media, in the form of providing insights, expert commentary and opinion pieces. Companies also need to be pursuing lead generation and digital marketing strategies, utilising social media to target their engagement on specific audiences. In this way, PR and digital marketing can then reinforce and amplify one another.
How Sapience Communications can help
Sapience is well versed in delivering these types of campaigns. Moreover, Sapience has a strong track record of working with many of the sectors currently looking to fundraise – including tech, healthcare and property, which have respectively raised £573m, £302m and £147m so far this year on AIM.
Indeed, given the competition for funding in particular sectors, achieving sector-specific prominence (for example in the relevant trade press and amongst industry influencers and decision makers) is also vital. Again, Sapience can help you achieve this, and also brings strong financial services experience to enable you reach different investor audiences.
If you would like to know more about how Sapience can help you, please don’t hesitate to get in touch with Louisa Nairne, via email@example.com.