What is investor relations?

Investor relations or what we commonly refer to as IR, is the strategic function that manages relationships between a public company, its shareholders, and the broader market.

IR ensures that all stakeholders receive timely, accurate, and relevant information about a company's financials, strategy, market position, and performance to inform their decision-making as supporters of the business.

More than just compliance, IR shapes perception, builds trust, and influences investor engagement - all of which directly impact share price, liquidity, and long-term market confidence to help the business grow sustainably.

Why IR matters.

The primary goal of IR is to build and maintain investor relationships, enabling public companies to communicate directly, efficiently, and personally with all their shareholders and prospective investors.

An effective IR function:

1. Strengthens investor loyalty through a continuous dialogue that fosters trust and keeps all investors aligned with the company story and progress.
2. Manages speculation by addressing concerns early to clarify key details with investors and prevent misinformation in the market.
3. Improves liquidity and trading volume through informing and engaging investors that trade more frequently as a result.
4. Reduces churn and attracts new buyers with clear communications that reassures investors and encourages long-term support of the business.
5. Supports better capital-raising outcomes through stronger relationships that secure funding from the investors that want to back the company.

For public companies, IR is not optional - it's a necessity.

The evolving landscape of IR.

IR has changed because investors no longer rely solely on brokers, analysts, or financial media for information. Instead, they seek insights digitally or directly from companies - but most public companies don't fill this gap effectively.

As a result, investors turn to social media, online communities, and third-party platforms to form their perceptions without company input or influence.

This shift in how investors acquire and process company information means that IR teams can't rely on traditional channels along to reach investors. To stay visible and in control of their market narrative, public companies need to evolve.

1. Investors rely significantly more on qualitative information and indicators than quantitative data to inform their investment decision-making.
2. More than third of investors are self-directed and make independent investing decisions which has risen rapidly from 19% in 2018.
3. Most investors rely on multiple sources of information, including investor-focused comms (61%) and direct dialogue with the company (57%).

The modern challenges of IR.

IR teams are responsible for keeping investors engaged and informed, but investor expectations have changed - and most IR teams can't keep up.

Built around one-to-one relationships, traditional IR struggles to scale, track, and manage investor engagement in an era where investors expect real-time updates and digital access.

1. Lack the time to scale engagement
   IR teams are small, often just one or two people managing thousands of investors and prioritising key institutional investors leaves retail shareholders without direct communication, creating an information gap.
2. Lack the tools to meet modern expectations
   Investors expect real-time updates, transparency, and direct access to leadership, but IR teams rely on static reports, emails, and outdated investor portals that don’t match how investors consume information today.
3. Struggle to reach self-directed investors
   IR engagement strategies still focus on institutional relationships. These investors aren’t in meetings, don’t get direct updates, and often turn to forums, social media, or secondary sources for information.
4. Structured around outdated engagement models
   Market perception isn’t just shaped by earnings reports or investor presentations - it’s driven by real-time conversations happening online. Yet, IR success is still measured by traditional KPIs like the number of investor meetings, rather than broader engagement across the full shareholder base.

Investor relations is no longer just a compliance function - it's a strategic necessity for public companies aiming to thrive in today's digitally-driven market. To succeed, IR teams must adapt, embracing proactive, scalable communication strategies that meet investors where they are.