Investor Relations 101: Direct Contact with Investors

In this post about investor relations, we will discuss the importance and some strategies on direct contact with current and potential investors.

If you are a public company, you should be able to get ahold of a NOBO list.  Shareholders are broken up into two different categories…. Objecting Beneficial Owners (OBOs) and Non-Objecting Beneficial Owners (NOBOs). Per SEC Rules 14b-1 and 14b-2, a NOBO list shows the beneficial owners that do not object to the issuer knowing their name, mailing address and share amount.  This list is important as a public company because constant contact with this list allows management to further tell the company’s story and in the case of micro-cap companies or those still seeking equity rounds of investment, it allows the opportunity to discuss potential investment with people who have already invested in the Company.   Depending on your strategy, mailings to the NOBO list should vary in frequency but always have some valuable information and news…not just fluff.

Finding Accredited Investors

Many smaller public companies and private companies seeking investors are essentially targeting an accredited investor.  Under the federal securities laws, only persons who are accredited investors may participate in certain securities offerings. (see more about accredited investors on  In general terms, an accredited investor has a high net worth, high enough to sustain a loss in an investment.  These are usually extremely successful business people, doctors, successful lawyers, professional athletes, etc.  Finding them is not hard, but systematically contacting them and informing them about the Company and its investment potential can be cumbersome.  Here are a few ways we recommend direct contact with potential accredited investors:

  • Call Center:  Having a team of professionals on the phone to make hundreds of phone calls a day is a sure-fire way to get your company name out in front of accredited investors.  Tip:  Make sure that you have a pre-approved script for people to follow and try to get the call center to schedule appointments to close any actual investment.  Call centers should generally just make an introduction into what the company does and ask if they would like to discuss more with the company’s management.
  • Direct Email: Technology affords us certain hacks that speed things up.  If you have a large email list of potential accredited investors, a smart mass email campaign can help save you time and money.  Make sure the email list complies with SPAM laws and use an email platform that generates good looking templates and designs so your emails look professional.
  • Physical Mailers:  While this may be the most expensive of the options, it can bring the best ROI.  This is because people generally check their mail and are excited to get something other than a bill.  If you write the letter in a personable fashion, a higher rate of response should be expected.

At Cervitude Intelligent Relations, we help microcap public companies and private businesses with all investor relations aspects.  Check out our other blog post in our Investor Relations 101 series including business plans for investor relationspitch decks for investor relationspress releases for investor relations, corporate and investor relations websites and more.


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