Non-Deal Roadshows
What are Roadshows and Non-Deal Roadshows?
Roadshows are a well-known part of the capital markets landscape, particularly in the context of Initial Public Offerings (IPOs). However, there are different types of roadshows, and one that is gaining significant traction is the non-deal roadshow (NDR). But what exactly is the difference, and why does it matter for public companies?
During an IPO, traditional roadshows play a crucial role by introducing your company, alongside the lead underwriter, to potential investors. This process is governed by strict regulatory requirements, limiting the kind of marketing materials you can use and the specific information you disclose. The goal is to determine an IPO price based on the interest generated by investors, though external factors—such as economic pressures or political events—can influence pricing and demand.
At Cyan, our primary focus is on non-deal roadshows. As the name suggests, these roadshows are not tied to an IPO or any offering of securities. This distinction is important because NDRs serve a different, but equally vital, role in keeping public companies visible and engaged with the investment community, without the constraints of selling securities.
Why Non-Deal Roadshows Stand Out Among Other Investor Engagement Channels
While there are many ways to connect with investors—such as attending conferences, participating in webinars, or using social media marketing—non-deal roadshows offer a unique advantage. Unlike larger, more generalized investor events, NDRs provide highly targeted, personalized interactions that foster deeper relationships. Conferences and digital outreach are great for raising awareness, but NDRs allow CEOs and management teams to directly address potential investors’ questions and concerns in a one-on-one or small group setting, making them an essential tool for effective investor engagement.
The Structure of Non-Deal Roadshows
Non-deal roadshows typically consist of a series of consecutive, individual meetings or group sessions, depending on the company’s preference and the timing of the campaign. Investors attend to learn more about your company and to engage directly with management, especially in the case of smaller, early-stage companies.
For in-person NDRs, companies often focus on specific territories, spending anywhere from a day to a week in a particular location, depending on the scope of the roadshow. This approach helps to maximize efficiency by reducing travel time and costs.
The Rise of Virtual Non-Deal Roadshows
At Cyan, we believe that non-deal roadshows are one of the most effective tools for investor relations, and they should be an integral part of any public company’s strategy. This belief has only been reinforced with the advent of technology that makes virtual meetings seamless and scalable.
While virtual non-deal roadshows don’t replace traditional in-person meetings, they offer distinct advantages, such as scalability, cost-efficiency, and easier scheduling for both investors and issuers. Virtual NDRs allow companies to reach a broader audience with minimal logistical challenges, making them a powerful tool in modern investor relations. However, we recommend a hybrid approach. In-person meetings still offer a level of effectiveness and personalization that virtual formats can’t fully replicate. A balanced mix of both formats ensures maximum engagement and flexibility.
Why Non-Deal Roadshows Are So Effective
In our experience, non-deal roadshows when implemented effectively offer a highly effective way to engage with investors because they are:
- Targeted: You meet with investors who are specifically interested in your sector or business.
- Personalized: Meetings are tailored to the investor’s preferences and questions.
- Focused: Investors attend these meetings with the sole purpose of getting to know your company.
Unlike larger conferences, which can be noisy and competitive, NDRs offer a more direct, controlled environment where the focus is entirely on your business.
Conversion Rates Matter
If you think of your investor engagement strategy as a sales funnel, activities like conferences and social media help to generate leads at the top of the funnel. Non-deal roadshows, on the other hand, are where those leads get ranked and converted.
The middle of the funnel is often where public companies struggle. Leads can go cold unless continually engaged. NDRs help optimize conversion rates by turning potential investors into actual ones through personalized, direct engagement.
The Takeaway
If you’re looking to engage new investors or nurture existing relationships, consider integrating regular non-deal roadshows into your investor relations strategy. These roadshows are an excellent way to convert leads, rank investors, and drive long-term value for your company.
If you need assistance in organizing non-deal roadshows or targeting the right investors, feel free to reach out to us using the form below.