➡️ Introduction

Throughout my investor relations career, I have often seen a focus on quantity over quality.

Vendors often focus on metrics with large numbers that help substantiate the value and “pitch”. After being pitched by all these service providers repeatedly (which is surprisingly frequent), I've started to notice recurring patterns.

Firstly, these firms’ pitch typically involves helping issuers get in front of bigger audiences, getting more 1x1 meetings, unlocking liquidity, etc. This may come in the form of conferences, digital investor promotion, influencer marketing — the whole gamut.

However, it’s not as straightforward as it seems.

Your pool of potential investors is already limited as a microcap, and thus, finding the right long-term partners is going to be challenging. Anyone working in the industry also knows how small it is, which discredits the large numbers mentioned earlier. 

Ultimately, many of the tactics pitched to you are just that… tactics… and they attract a certain kind of crowd. They are not going to be a substitute for actual business execution and are likely going to be expensive and ineffective to execute.

“Real microcap investors” focus on real businesses. They’re usually looking for similar things among companies and share similar approaches amongst each other as investors. This helps you focus your efforts.

In addition, having these people on your cap table offers distinct advantages to you as an issuer, which shouldn’t be ignored.

Of course, some microcaps are happy to get anyone onboard because, so few investors understand and care about their company. This is further exacerbated by the secular decline of active investors and market dynamics like U.S. trade and tariff uncertainty causing capital to flee to safety. 

I want you to help you think through your approach to attracting shareholders and how the right investors can contribute to you becoming a stronger, more resilient microcap.