Home Others Why An All-in-One IR Platform Is Perfect For Small-Cap Companies

Why An All-in-One IR Platform Is Perfect For Small-Cap Companies

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Just as few startups become unicorns, only a lucky few IPOs become publicly listed companies with trillion-dollar market capitalizations. The likelihood of growing to such prominence is rare.

The reality for most startups with dreams of going public is something much more practical: the world of nano caps.

Nano caps have relatively small market capitalizations compared to the biggest names on the Street. As a nano in the shadow of these giants, it’s easy to convince your team that you aren’t big enough to warrant a custom-built IR platform. But customized IR tools can improve your engagement analytics and refine your outreach according to your current needs.

What is a Nano-Cap Stock?

A nano-cap stock is a publicly traded company with a market capitalization of $50M or less.

This is just one kind of public company. The capital market ecosystem is lush with companies of all shapes and sizes, with nano-cap stocks taking a small corner. This variety means the industry needs several qualifiers to keep things straight.

Generally speaking, you can fit publicly traded companies into the following five categories of market capitalization:

  • Mega-Cap: $200B or more
  • Large-Cap: $10B to $200B
  • Mid-Cap: $2B to $10B
  • Small-Cap: $250M to $2B
  • Micro-Cap: $50M to $250M
  • Nano-Cap:$50M or less

Apple, Amazon, and the Alphabet company make up some of the most well-known mega-cap companies. These examples all start with the letter “A” by coincidence only do. As you can see by this list, mega-cap companies span the entire alphabet.

Regardless of their names, they represent the biggest corporations, and they’re often what the average person thinks about when imagining the buy-and-sell of the stock markets.

Mega-cap companies have the size and weight on the Street to justify the need for dedicated investor relations tools. But what about the small-, micro-, and nano-cap companies with a fraction of this capitalization?

Small-Cap and Below Need Purpose-Built IR Tools

It’s true, the same one-size-fits-all approach to your IR strategy wouldn’t serve a small-, micro-, or nano-cap company. However, IR tools are necessary for any market capitalization. Regardless of your size, you need to know who’s interacting with your brand and what content is resonating with investors.

Companies of all sizes and ages collect this critical IR intelligence across various digital channels, and analyzing this information is just as important to a nano- or mega-cap company. Having a custom-built program designed for your needs as a smaller company is essential to analyzing this data with any success.

The latest engagement analytics software consolidates your IR intelligence from your unique footprint, even if it’s only from an emergent IR website or your inaugural capital markets virtual event. The best tools can eventually scale to your needs as your company and IR intelligence grow.

Your data, once collected, gets cleaned, consolidated, and analyzed before it shows on your dash. In automating these processes, engagement analytics software streamlines your workflow.

But more importantly, you’re in possession of unparalleled IR intelligence that can help your team complete a variety of tasks:

  • Benchmarking your performance against other nano companies.
  • Nurturing deeper relationships with shareholders.
  • Reporting on the impact of your content.
  • Targeting the right investors.

Bottom Line

Even nano caps need a strong investor relations presence to retain shareholders and target new investors. An all-in-one platform can help you aggregate digital investor interactions so that you can focus on targeting and outreach. Having the right IR intelligence at your fingertips can help your nano grow.