Investor Relations for Start-Ups: An Analysis of Venture Capital Investors’ Communicative Needs

Abstract

The term ‘investor relations’ (IR) often refers only to the very formal and primarily anonymous relations and communication between publicly traded companies and their (potential) shareholders. Especially for young and not yet publicly traded companies (so-called start-ups), it can be shown that the individual contact to a very small and well-known group of investors (e.g., venture capital investors) is essential for survival. Using conjoint analysis, this paper examines the communicative needs of venture capital investors, as they are the formative influence on the communication strategy of young, unlisted start-ups.

Keywords: investor relations, venture capital, start-up, conjoint analysis

JEL Classification: G24, M13