Investor Relations (IR) teams play a key role in many companies, both public and private. The goal of this team, in addition to activities related to the fulfillment of disclosure obligations, is the appropriate management and sharing of information with all interested parties (shareholders, investors, regulators, the media or the local environment).
Effective investor relations are primarily proactive activities aimed at reducing the time needed to perform routine administrative tasks while constantly improving the quality of communication with investors and stakeholders.
Thanks to these activities, investors can make informed investment decisions based on reliable information. Investor Relations teams stimulate the company's relations with its market environment, therefore they must understand how to enter into relations with e.g. investors in order to ensure effective communication, be visible and adapt to dynamically changing market conditions.
Technology in investor relations, i.e. Virtual Investor Relations
The investor relations used are directly related to the appropriate tools that can be classified according to many criteria. One of them is the division according to the way of transferring information, i.e. direct, indirect and electronic communication tools:
Direct communication tools mean personal contact of all interested parties in the form of, for example, a general meeting of shareholders, open meetings, one-to-one meetings, roadshows, brokerage house conferences or open days for investors.
Indirect communication tools are most often in the form of documents used in the preparation of periodic reports, current reports, communications to the media, letters to shareholders, press interviews, communications to the media or in prospectuses.
Electronic communication tools have a chance to reach the largest number of stakeholders and, in practice, come down to replacing the paper form of documents with the electronic form. Such tools include: the issuer's website, newsletters, teleconferences, mailings, social media, internet chats, video, etc. Recently, such tools also include Virtual Data Rooms, the functionality and importance of which has increased especially in the era of the COVID-19 pandemic.
Faster implementation of technology is of key importance for companies where information is a price factor and has a direct impact on the company's legal, financial and marketing situation. Appropriate technology is also more and more important for investors who, instead of constantly relying on the IR team, expect easier access to current information about companies, their history and easy navigation through data and documents.
Virtual interactions and raising capital in the age of a pandemic
In the new circumstances caused by the COVID-19 pandemic, the financial industry had to modify the current operating standards by engaging in the digitalspace and completely removing paper from the process, while improving the quality of information provided by investors. This process is visible in both private mergers and acquisitions (M&A) and capital markets transactions (ECM / DCM).
The search for capital or an investor is more and more often a completely digitizedand virtual process. Transaction initiation meetings, NDA signing, due diligence process, negotiations and the final signing of the SPA agreement or the disclosure of the prospectus and closing the transaction on the capital market have moved to the network or have a hybrid form.
Technological solutions support Investor Relations teams and improve communication with investors, transparency and reporting of companies
The new, virtual form of investor relations and transactions requires appropriate tools enabling safe and effective communication and work of many teams involved in the transaction. This form is ensured by professional Virtual Data Room solutions. Using Virtual Data Room builds trust among companies and their investors, proves the professional approach of Investor Relations teams to work with users and documents.
Through the Virtual Data Room, investors can view documents, reports or analyzes at any time without the need to contact the IR department. They have allthe information they need at their fingertips, which significantly saves their time. Virtual Data Room technology enables the adjustment, automation, availability and distribution of information activities within investor relations at the right timeand scope.
On the other hand, the Company, together with the Investor Relations team, by using the Virtual Data Room to communicate with investors, has everything under control in one place and with full monitoring of the activity of all users. It is known who has access to the VDR portal, what permissions they have and what documents they view, download or print. In addition, VDR often allows you to ask questions about specific documents and interact with users. This gives great opportunities for additional communication with investors and work in one safe environment.
Virtual Data Room SECUDO - a professional tool for investor relations
Virtual Data Room SECUDO is a solution for conducting projects requiring security, confidentiality and constant monitoring of user activity. It gives you the ability to securely share files and documents, encrypt and process them, and ultimately convert to secured formats.
Each of the projects carried out in VDR SECUDO gives the possibility to prepare a document structure, own or automatic document index and fast file upload. Large files are reduced, the resolution of scanned documents is increased and all documents are watermarked for greater security and control over the content of sensitive documents. Data and documents prepared in this way are ready to be made available to authorized users.
Granting permissions in Virtual Data Room SECUDO takes place on an individual level, which allows you to precisely define which people or groups gain access to which documents and to what extent. This is of great importance when working with various groups of investors. Only the person with the Administrator role has full access to the documentation in a given data room. This means that they can create folders, add documents, view them in the system, download (original, PDF, encrypted PDF) and print. The situation is different in the case of Users. The mere fact that they are invited to the project does not give them access to the documentation. For this to happen, they must be granted appropriate permissions. The important thing is that we can give different permissions to selected users for each folder and even a file.
It is extremely important that in VDR SECUDO individual investors (e.g. managers and analysts from one mutual fund) may see themselves within one group, but they do not see other investors (e.g. managers and analysts from one pension fund). VDR SECUDO enables work and communication in assigned groups and communication with the investor relations team.
On the other hand, the IR team in VDR SECUDO has the ability to quickly analyze which investors are the most active, which documents enjoy the greatest interest and what investors are looking for in the documents and data provided.
The functionalities and the VDR SECUDO interface have been selected in such a way as to provide users (IR teams, investors, stakeholders) with pleasant and safe work with documents. What's more, VDR SECUDO is today a complete tool for remote work, which in pandemic conditions can provide investors and issuers with business continuity as well as comfortable and effective working conditions in the virtual space.
About us
DealDone is a specialized company that offers high-quality products in the field of data information security. We offer services and software in the field of modern technologies for the circulation of confidential information, classified information, sensitive data as well as digitization, security, encryption and sharing of data and documents inside and outside the organization.
DealDone independently developed and introduced for sale the Virtual Data Room SECUDO system. VDR SECUDO is a platform for secure exchange and processing of confidential information offered in the Software-as-a-Service model for business clients, in the form of virtual data rooms.
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