The Rising Popularity of Virtual Non-Deal Roadshows

Virtual non-deal roadshows (NDRs) have emerged as a key tool for public companies to engage with investors in an increasingly global and interconnected world. While in-person meetings have long been a staple of investor relations, the virtual format has gained significant traction due to its scalability, cost-effectiveness, and flexibility. In this article, we’ll explore the factors behind the growing popularity of virtual NDRs, including how regulatory changes and evolving technology are shaping the future of investor engagement. We’ll also discuss best practices for organizing a successful virtual NDR and why adopting a hybrid approach may be the best strategy for your company.

MiFID II: The Catalyst for Virtual Non-Deal Roadshows

The implementation of MiFID II (Markets in Financial Instruments Directive II) in 2018 marked a turning point in how companies access and engage with investors. A major shift introduced by MiFID II was the unbundling of corporate access from investment research. Previously, companies often received roadshow services bundled with research from investment banks, making it easier to arrange in-person meetings with potential investors.

Under MiFID II, these services must now be purchased separately, significantly increasing costs for companies, particularly smaller public companies with limited resources. This regulatory change accelerated the adoption of virtual non-deal roadshows as companies looked for more cost-effective ways to connect with investors. The ability to organize virtual meetings without the travel and logistical expenses associated with traditional roadshows became increasingly appealing.

Fast forward to 2020, when the global pandemic further catalyzed the shift to virtual platforms. With travel restrictions in place and a growing reliance on remote work, public companies were forced to embrace virtual technologies for investor engagement. Today, the flexibility and scalability of virtual NDRs make them a core component of many investor relations strategies, particularly for companies looking to reach a global investor base.

The Advantages of Virtual Non-Deal Roadshows

Virtual non-deal roadshows offer several key benefits that have contributed to their rising popularity:

1. Cost Efficiency: Organizing traditional in-person roadshows often involves significant travel expenses, venue costs, and logistical coordination. Virtual NDRs eliminate many of these costs, allowing companies to engage with investors on tighter budgets. This cost-efficiency is particularly beneficial for smaller public companies looking to maximize their investor relations efforts without overspending.
2. Broader Access to Investors: One of the biggest advantages of virtual NDRs is their ability to reach a larger, more diverse pool of investors. Companies are no longer limited by geography or time constraints, enabling them to engage with investors from different regions and time zones. This democratization of access opens doors for smaller investors and creates a more inclusive investor relations landscape.
3. Convenience and Flexibility: Virtual meetings are easier to schedule and less disruptive to both investors and issuers. The virtual format allows for meetings to take place at more convenient times, reducing the friction of coordinating in-person meetings across different cities or countries. This flexibility also allows companies to engage with investors more frequently, fostering deeper and more consistent relationships.
4. Scalability: Virtual NDRs can be scaled up or down depending on the company’s goals. Whether you’re targeting a handful of key investors or organizing a larger series of meetings, the virtual format is adaptable to different needs. This scalability makes virtual NDRs a versatile tool for companies at different stages of growth or in varying financial conditions.

How to Organize a Successful Virtual Non-Deal Roadshow

Organizing a virtual NDR requires thoughtful planning and execution to ensure success. Here are some key steps to consider:

• Targeting: The foundation of a successful NDR is targeting the right investors. Start by identifying investors who hold positions in comparable companies or have expressed interest in your industry. This ensures that the meetings are relevant and productive. Collaborate with your investment bankers, third-party investor relations advisors, and internal teams to build a comprehensive target list.
• Audience Building: Once you’ve identified the right investors, start building your outreach strategy. Email is often the most effective initial touchpoint, but follow-up calls can help secure meetings with colder leads. Be mindful of the preferences of individual investors, many of whom prefer to respond at their own convenience.
• Scheduling: Virtual NDRs offer the advantage of flexible scheduling, but it’s still essential to plan the timing of your meetings carefully. Consider time zones and investor availability, and aim to stagger meetings in a way that doesn’t overwhelm your team or the investors.
• Structure: Virtual NDRs can be structured as either individual meetings or group sessions, depending on your goals. One-on-one meetings provide a more personalized experience, while group sessions allow you to engage with multiple investors simultaneously. Tailor the structure to your company’s objectives and the preferences of the investors you’re meeting.
• Presentation: A compelling, tailored presentation is key to converting investor interest into action. Customize your messaging to address the specific interests and concerns of each investor group. Focus on your company’s growth story, financial performance, and long-term vision, while leaving room for interactive Q&A sessions.

The Hybrid Approach: Maximizing Investor Engagement

While virtual non-deal roadshows offer undeniable benefits, they don’t completely replace the value of in-person meetings. Many companies find that a hybrid approach—combining both virtual and in-person NDRs—delivers the best results. Virtual roadshows are ideal for broadening your reach and engaging with a larger pool of investors, but in-person meetings provide deeper, more personal connections.

In fact, using virtual NDRs to qualify leads and gauge investor interest can help optimize the effectiveness of your in-person meetings. By identifying the most promising investors through virtual interactions, you can focus your in-person roadshows on the highest-priority opportunities. This hybrid approach allows you to balance cost, convenience, and relationship-building in a way that best suits your company’s needs.

The Future of Investor Relations

As technology continues to evolve, virtual non-deal roadshows are likely to become an even more integral part of investor relations strategies. Whether through enhanced video conferencing tools, AI-driven investor targeting, or seamless hybrid event platforms, the future of investor engagement is undoubtedly digital. However, the enduring value of in-person interactions will ensure that traditional roadshows remain an important complement to their virtual counterparts.

For public companies looking to enhance their investor relations efforts, embracing virtual NDRs and integrating them into a broader engagement strategy can provide a competitive advantage in today’s fast-changing capital markets landscape.

At Cyan Capital, we specialize in organizing targeted, effective non-deal roadshows—both virtual and in-person—to help you build lasting relationships with investors. Contact us today to discuss how we can support your company’s growth and visibility in the capital markets.