Why you need to use social media to attract investors
Attracting investment can be hard so you need to use every trick in the book. In the past, B2B businesses might have overlooked social media but now it’s a vital weapon in your armoury because it boosts your image, increases networking and drives lead generation.
If you would like to sharpen your strategies when it comes to using social media to attract investment, we’ll walk you through some fundamentals, along with an analysis of the best platforms to reach investors.
Be Visible
This might seem like an obvious tip, but a great number of businesses have inconsistent, incomplete or irrelevant social media accounts. An audit of your company’s existing activity and profile and the planning of an overall strategy is an essential first step. Once you have refined your image and your messaging, you then need to focus on maintaining a consistent presence and building your social proof. Whether you are a start-up or an established business, your social media strategy needs to be focused on the long game. Quality matters and it is important to build your presence organically to position your business as reliable and to foster trust in your brand, two significant factors for investors to consider. And don’t just concentrate on your own posts—follow key figures and influencers in your sector, and engage them with well thought-out comments. Using platforms such as LinkedIn for virtual networking will build a strong online presence for your business.
Choose your Words Wisely
In a 2015 study by Greenwich Associates, more than 30% of investors stated that their investment decisions were influenced by information on social media channels. With the rapid rise of social media use in recent years, these figures have surely increased exponentially. While your accounts may be targeted towards your potential client base, ensure your social media manager is aware of your investment aims and features them on the platforms potential investors may be looking at.This is also where a great back story can help you to achieve your goals. Angel investors love to find out about how a founder started their business from scratch and what drives and motivates them. You don’t need to have achieved superhuman feats, but for that all important first impression, it may be worth investing in a professional storytelling service to ensure that your narrative and profile are optimised to render them unique and compelling.
Be Seen in the Right Places
Statistics show that 55% of consumers learn about new brands on social media and investors are also consumers. Particularly important for start-ups, you need to get yourself out there and establish an online reputation that sells you to venture capitalists. A Wharton Business School study of Twitter found that the social media activity of start-ups was often influential in funding outcomes. And it’s not just your company that needs to be seen—investors will also look at key employees in your business, so you need to ensure that management figures have a positive and active online presence. Depending on your resources, it’s best not to spread yourself too thin—identify the most relevant platforms that will enable you to connect with customers and potential investors and get to work on polishing your profile and messaging. Which leads us nicely on to the next section…
Which Social Media Platforms Should I Use to Attract Investors?
While there is no one size fits all approach, as each company will have unique social media needs according to their business profile, at Word & Pixel, we’ve identified three key platforms that we feel are essential for B2B companies. These should be core to your strategy if you are looking to capture the attention of investors.
The gold standard when it comes to social media for companies looking to boost investor relations, LinkedIn is a particularly valuable platform for B2B, with much more emphasis on networking and relationship building. It can be used for key corporate events and milestones such as achievements and financial reports as well as thought leadership articles and highlighting the company’s ethos in matters such as diversity or support of local causes. It is also the perfect platform for posting videos or interviews with the CEO or Company Directors, enabling investors to gain some insight into the company’s management structure and style.
Twitter is the next essential channel for B2B companies looking to catch the attention of investors. Primarily a text platform, posts need to be time relevant, succinct and powerful. It is great for introducing infographics, white papers, press releases and contributing to anything that is buzzing within your industry. If you already have some potential investors identified you can retweet or respond to their tweets to connect. You can also find out their topics of interest by clicking on their Twitter URL and then selecting the “likes” tab. This gives you a ready-made resource when it comes to getting on their radar.
While this platform might not be a big winner when it comes to popularity contests, it is one of the most long standing channels and still remains a heavyweight within the social media world. It is particularly useful for communities and for fostering retail investment relations. A great number of people still use Facebook for their news and entertainment and it has a host of options for engaging your community, which can in turn demonstrate brand loyalty and customer connection to any potential investors. And if you have the budget, you can even target paid ads to reach those listed with the interest of “accredited investor”.
As you can see, social media can be leveraged to be a key tool in convincing prospective investors to have faith in both your business and those in charge of it. Not only can it help to promote a positive company image, attract a larger following and boost visibility, it can also offer a unique insight into company culture that could be a deal-breaker for an investor. At Word & Pixel we’ve helped our clients to achieve investment with a carefully curated social media strategy that targets the right people, with the right content, at the right time. Get in touch to find out how we can help your B2B company grow.
