Investor Relations with Data Rooms

Erik Mills

3 min read

#Dealroom news Update: Apr 26, 2021

For individuals planning to get involved in the investment market, investor relations is a key term they should become familiar with. 

What exactly is investor relations? Well, investor relations can be described as the formal communication between a public company, its investors, its shareholders, relevant government authorities and the financial market.

What does investor relations do?

The purpose of investor relations is to give individual personnel, especially those in the investment market, a clear picture of the potential company’s finances and its ongoing operations. Essentially it helps assess the level of investment risk a corporation projects. 

Investment relations are maintained through press releases, annual reports, the official website and presentation reports. Lately, companies have also been communicating through various media platforms. It is critical for businesses to sustain sound investor relations as it is a mandated requisite by-law in several nations.

The benefits of having an investor relations manager include:

• Maintaining a loyal shareholder base.
• Boosting the long-term shareholder value.
• Building long-term credibility of the firm with the investment community as a whole.
• Ensuring favourable terms for future financing with receptive capital markets.

What should you look for when hiring an investor relations manager?

For successful business management, hiring a competent investment relations manager is a must. An investor relations manager is the go-to person that communicates by:

• Coordinating & scheduling meetings between the shareholders.
• Managing press conferences for the firm.
• Handling and releasing financial reports to the investment market.
• Conducting financial analyst briefings.
• Releasing quarterly and annual financial reports as well as operation reports.
• Managing any crisis that arises due to financial disclosure.

An investment relations manager position is neither entry-level nor easy; that is why businesses should look for seasoned professionals or investor relations firms who can handle multiple portfolios and are well-versed in different regulatory requirements.

Anyone who leads investor relations for a company should have 2 to 7 years of working experience in positions that have enabled them to gain crucial experience in public relations, financial investment, accounting, legal and other relevant fields.

What are investor portal solutions?

At the 50^th anniversary of the NYSE (New York Stock Exchange), Warren Buffett, one of the most renowned investors in the world, was quoted saying that “it is of crucial importance that all members of the investment community receive every piece of the data at the same time and of the same quality, regardless of their size and investment capacity”. This is precisely what investor portal solutions do. 

By utilizing investor portal software (like Dealroom has), firms can easily distribute relevant information to the authorized parties, quickly without any hassle. Fund managers can also easily oversee an investor portal whilst keeping the financial information confidential.

Key features of an investment relations software with data rooms

Data rooms serve as suitable investor relations solutions, as they help easily organize, store, and share the sensitive financial data of both public and private companies. 

Not just that, data rooms also create an easily searchable database from the data collected for a specific company. Therefore, data rooms are becoming an integral part of an investor relations manager’s work tools. Below, we take a look at some features that make them a top choice:

• Secure storage of documents. Nowadays, data protection is one of the leading priorities for all corporations across the globe. Secure storage of confidential documents is of critical importance, and data rooms can easily do just that with the help of 2FA, end-to-end encryption, fence view, and more data protection features.
  
• Centralization of crucial data. By utilizing data rooms, investment relation firms can easily organise a database containing the company’s financial documents and other important documents that can be easily shared with the stakeholders and the investment community.
  
• Excellent CRM (Customer Resource Management). Data rooms offer some CRM tools that are helpful in recording and tracking customer communications that can be easily accessed on demand. They allow the manager and users to easily track document usage and sharing, chat within data rooms, assign tasks, leave comments, etc.
  
• Automated reports. Data rooms also create automated reports that are highly beneficial for the end-user. You can customize their setup and enjoy regular and hassle-free reporting on your data sharing, downloading, and usage for free.