SRAX Inc.’s (NASDAQ: SRAX) Sequire Well Suited t
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- Investor relations teams have witnessed radical change in ongoing responsibilities over past few years
- No longer limited to servicing existing and potential investors, IR teams must now respond to ESG queries, engage with both debt investors and credit rating agencies
- Increased responsibilities have led to heightened need for supplemental tools to assist with influx of new data, to complement ongoing IR efforts
- Sequire’s investor intelligence platform has partnered with publicly listed corporations to help provide further insight, assistance during investor engagement efforts
Investor relations (“IR”) teams have opted to refocus their strategy in what has been an unusual year for corporations across the world, seeking to emphasize both strategic engagement with existing shareholders as well as attraction of new potential investors. IR executives have also been drawn to advising corporations on their adherence towards emerging Environmental, Social and Governance (“ESG”) standards, while simultaneously maintaining and improving engagement with debt investors and ratings agencies alike. The consequent and extraordinary increase in role responsibilities and data requirements has worked in the favor of SRAX (NASDAQ: SRAX), a financial technology company focused on unlocking data and insights for publicly traded companies through Sequire, its proprietary investor intelligence platform. The platform has enjoyed a remarkable increase in demand for its services as of late, as IR teams seek to increase investor engagement during ongoing unprecedented global business conditions.
A recent investor relations-focused survey carried out by the Bank of New York Mellon (https://nnw.fm/6LnpN) found that engagement with existing and prospective institutional investors continued to be a top priority for corporate management and IR teams alike, with the latter group devoting 38 percent of their time to existing shareholders while spending a further 25.5 percent catering to prospective investors. However, in a sign of the shifting priorities of the investment community, over 71.3 percent of IR respondents declared that communicating with investors on ESG and Corporate Social Responsibility (“CSR”) issues was now an extension to their ongoing responsibilities.
Corporate IR teams have increasingly shifted towards adopting digital solutions and the data garnered from such mediums as a way of managing the increased demands on their time while simultaneously improving engagement with investors and stakeholders. The sharp uptick in demand for investor data and digital technologies had been mirrored by engagement levels witnessed on SRAX’s Sequire platform. Launched as a stand-alone platform in early 2020, Sequire today boasts over 1 million investors and traders on its platform as well as 91 publicly-listed corporate subscribers (http://nnw.fm/0Wf4E) – a surge of growth largely driven by Sequire’s extensive range of services.
Sequire’s investor intelligence platform allows its subscribers to track their shareholders’ selling and buying trends, search and monitor key investors, track outstanding warrants, receive the latest company-specific news and media, and even create and send out customized shareholder surveys designed to elicit their stake-holders’ insights and opinions (https://nnw.fm/zHyAi).
Perhaps most critically, Sequire allows IR teams to compensate for activities which have been supplanted due to the increased demands on their time. The BNY Mellon survey showed that in 2017, IR teams would spend 26.4 percent of their time catering to prospective institutional investors – a figure which would be reduced to only 25.5 percent by 2019.
Sequire’s management illustrated the platform’s potential to make up for what would traditionally have been a key task for investor relation teams. In one example, a single corporate subscriber using Sequire witnessed its number of individual shareholders skyrocket from 3,000 to over 360,000 during its tenure on the platform.
The investor relations function at publicly listed corporations has undergone a dramatic transformation as of late – with increased regulatory burdens and social distancing leading to a heightened need for both investor intelligence platforms as well as digital distribution channels to facilitate investor communications. Sequire has sought to transform its platform to cater to the growing needs of the IR community, placing it in good stead to benefit from the ongoing evolution of investor relations.
For more information, visit the company’s website at www.SRAX.com.
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