Investor relations ensures that tokens are being fairly traded through the dissemination of key information that allows investors to determine whether a company is a good investment for their needs.

Investor Relations (IR) combines finance, communication, and marketing to effectively control the flow of information between a company, its investors, and it’s tokenholders.

Investors play a major and vital role in the success and growth of a company. Because of that fact, it’s of the utmost importance for companies to maintain strong, transparent relationships with investors.

The top executives of a company often have a large number of tasks they have to juggle on a daily basis. To help handle some of these responsibilities, the IR department will often be the place where word from Wall Street comes in, and will also be the portal through which the company communicates back.

Think of your IR person as the face of a company. Of course the CEO is the face of the company but when you need more information on the inner workings of an offering- This is where the investor relations department of a company comes into play.

The main goals of investor relations professionals are:

• Representing the company to investors and representing investors to the company
• Providing financial information to investors in a timely and accurate way
• Providing non-financial data to support company valuations
• Observing the rules of securities commissions and ensuring all communications and investor presentations are compliant and align with the company message
• Presenting investor feedback and any issues to company management and the board
• Help manage and track quarterly investor in person meetings

The main goal for your Investor Relations person is to bridge the company vision, mission, strategy and markets with analysts and investors in a way that makes sense.

They also help to reinforce messages and manage all external communication channels (conference calls, investor presentations, investor meetings, press releases, filings).

The newest IR practices have 3 purposes beyond’s its traditional functions;

• Proactive ‘person of contact’ familiar with the company’s story
• Fundamental understanding of token offerings & the investment process
• Internal purveyor of market intelligence to executives on sentiment and valuation drivers

IR also acts as a communication portal for investors and the company but they also assist with many types of investor communications. The first role of your IR person will be to create a captivating and exciting story about your upcoming STO that they can clearly communicate with investors compliantly.

Your IR person can also act as a translator for investors, ensuring that they understand everything about your STO including how tokenization works & breaking down some of the more ‘technical’ terms to ensure investors have a clear understanding of your STO, their investment and everything in between.

So what are the benefits of having an investor relations person? There are many but to name a few: they help maintain a loyal tokenholder base, while enhancing long-term tokenholder value, ensure receptive capital markets for future financing at favorable terms, lower the cost of capital and of course build long term credibility with the investment community.

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If you’d like to talk about Investor Relations for your upcoming STO, please send us an email;

Jessica Burns, Head of Investor Relations, Security Token Advisors: jessica@securitytokenadvisors.com.