Navigating investor relations during a private placement
A private placement can be a great way to raise capital and bring in investors who genuinely back your story. But it also puts your investor relations (IR) under a microscope.
When you’re speaking to investors behind closed doors, trust matters even more. People want to know what you’re building, how you’ll use the funds, and whether you’ll keep them in the loop once the deal is done.
Here’s a plain-English guide to managing investor relations during a private placement — before, during, and after the raise.
Start with trust (because that’s what investors are really buying)
Private placements move fast. Investors might be asked to make a decision quickly, often with limited time to digest information. Your job is to make it easy for them to feel confident — without overselling.
A good IR approach in a placement usually comes down to three things:
Be clear, consistent, and on time
If you say you’ll send an update Friday, send it Friday. If numbers change, explain why. If you don’t know something yet, say that.
Investors don’t expect perfection. They do expect straight answers.
Share the right information early
You’ll usually need a tight set of documents that make it easy to understand:
what your company does
how you make money (or plan to)
what success looks like over the next 12–24 months
what you’re raising, and why
This is where many raises wobble — not because the business isn’t strong, but because the story is hard to follow.
Set expectations upfront
Don’t leave investors guessing about timelines, risks, or what happens next. Be upfront about:
placement timing and key steps
the main risks (commercial, regulatory, market)
what might change after the raise
A calm, honest tone beats hype every time.
Tell a simple investment story people can repeat
In a private placement, your “investment story” needs to travel. Investors will repeat it to partners, committees, and advisers — and the clearer it is, the more likely it lands.
A strong story usually covers:
The problem: what’s broken or missing in the market
Your solution: what you do, in one sentence
Why now: what’s changed that makes this urgent
Proof: traction, revenue, customers, milestones, or strong signals
The plan: what you’ll do with the money
The upside: what growth could look like if it works
If you can’t explain it clearly in two minutes, it’s worth tightening before you go out to market.
Find the right investors (not just any investors)
It’s tempting to cast a wide net during a raise. But investor relations works best when you’re speaking to the right people — the ones who understand your space and are aligned with where you’re heading.
A practical approach:
Build a targeted outreach list
Look for investors who:
invest in your sector or stage
have backed similar stories
can add value beyond capital (relationships, expertise, credibility)
Then tailor your outreach so it’s obvious why you’re contacting them specifically. A generic pitch is easy to ignore.
Use the placement process to qualify them too
This part matters: not every cheque is a good cheque.
Pay attention to how potential investors behave:
Do they ask thoughtful questions?
Are they realistic about risk?
Do they respect boundaries and timelines?
You’re building a long-term relationship, not closing a one-off transaction.
Run the placement like a communication campaign
Good placements feel organised. Great placements feel calm.
A few practical ways to do that:
Plan your investor touchpoints
Decide what you’ll share, when you’ll share it, and who owns each step. For example:
initial outreach
information pack and follow-up
Q&A / meetings
commitment and allocation updates
close and post-raise communication
If you’re running roadshows or presentations, keep them tight and focused. Investors want clarity, not theatre.
Make it easy for people to do due diligence
Investors will need to get comfortable quickly. Help by creating a clear “source of truth” — one place where they can access the latest documents, updates, and answers.
That reduces repeated questions, avoids mixed messages, and keeps momentum moving.
After the raise: don’t disappear
One of the biggest IR mistakes in private placements is going quiet once funds are received.
Your investors want to see progress — and they want to feel like they backed a team that communicates well, especially when things get messy.
A simple post-placement rhythm might include:
a short monthly update (high level)
quarterly reporting (more detailed)
occasional investor calls or webinars for major milestones
It doesn’t need to be fancy. It just needs to be consistent.
Also: invite input where it’s genuinely helpful. Some investors have deep experience and networks. If you make it easy for them to contribute, you often unlock support you didn’t expect.
The bottom line
A private placement isn’t just a funding event — it’s the start (or reset) of your investor relationships.
If you stay clear, honest, and proactive throughout the process, you’ll attract better-aligned investors and reduce friction when it counts.
And if you keep the communication going after the placement closes, you’ll build the kind of trust that makes future raises, partnerships, and growth much easier.