How Branding Contributes to a Successful IPO or Fund Raising
Here are some interesting facts from Ernst & Young that underlie IPO’s and fund raising:
- Market Volatility
- Investor’s Confidence
- Economic Growth
IPO’s are generally at least two years in the planning, which requires searching for growth capital to constantly maintain and create a competitive advantage.
Here are some key factors of strong branding for a successful IPO or Fund Raising:
- 1. Differentiation
With over 150 IPO’s a year, a company’s brand needs to stand out in order to create the necessary excitement and boost investor’s confidence. With such a huge number of annual IOP’s, a company needs to differentiate itself from the clutter and noise out there.
- 2. Create a broad based brand not just a logo and visual facelift.
In order to boost investor’s confidence, a brand needs to emanate the right messages and be based on industry knowledge and precision. Offering a unique promise, values, propositions that is more that=n the sum of the product or services offered by the company.
- 3. Investor’s banks and venture capitals are looking for a story to sell to their investors.
By building a strong story to serve as the foundation of the brand you actually help investor banks and venture capitals to pitch your company to potential investors. A precise, thought provoking story, that answers the question “why should I invest in this company?” is the foundation of any strong brand.
- 4. Strong Brands attract strong investor partners
Strong brands attract strong investors. Investors will always want to align with strong brands. This in turn will strengthen their value in the market and in return will strengthen your brand.
- 5. A strong brand boosts investor’s confidence
As we have seen in the above mentioned key points, a strong brand will attract strong investors, who will elevate the company’s market value, that will attract greater opportunities that will position the company as unique in the industry with great differentiation factors and so on…and so on….