A key challenge most companies encounter post raise is managing their new cap table. We asked the experts over at Orchestra for their top tips on how to best manage multiple shareholders after you've completed a raise. Hear what Keegan Vivian-Greer, Director of Sales had to say;
Congratulations! Your crowdfunding campaign was a tremendous success, and you've successfully raised capital from enthusiastic investors. Now, the real work begins - managing and maintaining a positive relationship with your extensive shareholder base. In this comprehensive guide, we'll explore key strategies and practical tips on how to effectively manage large quantities of shareholders after a crowdfunding capital raise.
1. Communication is key
One of the most crucial aspects of shareholder management is transparent and consistent communication. Establish a communication plan that includes regular updates, newsletters, and dedicated channels for shareholder queries. Utilise software, social media, and webinars to keep your investors informed about company progress, milestones, and challenges.
2. Leverage technology
Consider implementing shareholder management software to streamline communications and efficiently manage the growing number of investors. Online software platforms can provide tools for tracking shareholder information, managing equity, and facilitating smooth communication.
3. Create a shareholder hub
Develop a dedicated online platform or shareholder hub where investors can access relevant information, documents, and updates. This centralised hub helps in fostering a sense of community among shareholders, and it becomes a go-to resource for all things related to your company.
4. Host regular shareholder meetings
Schedule periodic virtual or in-person shareholder meetings to provide a platform for direct interaction. These meetings can include updates on company performance, Q&A sessions, and discussions on future plans. Engaging with shareholders in real-time helps build trust and strengthens the bond between the company and its investors.
5. Educate your shareholders
Many crowdfunding investors may be new to the intricacies of company ownership. Develop educational materials or webinars that explain how shareholder rights and responsibilities work, as well as the financial aspects of their investment. An informed investor is more likely to be a supportive and understanding one.
6. Offer perks and incentives
Keep your shareholders engaged and motivated by offering exclusive perks or incentives. This could include early access to new products, discounts, or special events. Providing tangible benefits helps maintain enthusiasm among your investor community.
7. Handle queries promptly
As your shareholder base grows, so will the volume of inquiries. Develop a system for efficiently handling queries, whether through a dedicated support team or an automated ticketing system. Prompt and personalised responses go a long way in keeping investors satisfied.
8. Ensure compliance
Stay on top of legal and regulatory requirements related to shareholder management. This includes maintaining accurate records, adhering to reporting obligations, and ensuring compliance with relevant securities laws. Australia's ECF regulations, governed by the Australian Securities and Investments Commission (ASIC), outline the necessary guidelines for companies engaging in crowdfunding activities. These regulations emphasise the importance of transparency, disclosure, and compliance to protect both investors and businesses.
Successfully managing hundreds of shareholders after a crowdfunding capital raise requires a proactive and strategic approach, especially considering the specific regulations in the Australian equity crowdfunding landscape. By prioritising communication, leveraging technology, and creating a supportive community, you can turn your diverse group of investors into long-term advocates for your company while ensuring compliance with relevant regulations, such as those set forth by ASIC.
Remember, a well-managed shareholder base is not just a sign of a successful crowdfunding campaign but a key element in your ongoing business success.
To learn more about how Orchestra can help develop better relationships with your shareholders while maintaining company compliance speak to one of our team.
