Investors Connect with Companies Through Variety of Networks
A recent post from the Wall Street Journal calls attention to a new trend among investors involving them connecting to companies through different networks. In an article on March 4, Sarah E. Needleman notes that the South By Southwest festival has become the latest place for networking between investors and companies. Although many people still rely on LinkedIn and other traditional arenas for connections, there is a movement that is expanding people’s options.
Needleman mentions that events like South By Southwest make it “easier to connect with investors” and see real results from the interactions. This trend is reaching beyond festivals, conferences or social networks. There are websites that are growing in popularity because they are helping investors, brokers and companies make connections. For example, PitchCrunch is helping businesses and entrepreneurs connect with investors who are interested in startups and can fund their ideas based on real business plans. Link My Stock is another example that is helping stock brokers, brokerage firms, public companies and investors learn more about companies by creating a unified area for posting information, press releases, blogs and other updates. In addition, ExplorationFunder is creating a crowdfunding platform for investors to connect with companies.
John Frankel points out, “If you just stick with companies recommended to you, you can miss out on some amazing [investment opportunities].” This is why investors turn to South By Southwest and other platforms because traditional methods of learning about new companies have limitations. Collaboration between investors and companies is no longer being limited by as many constraints. As Sarah E. Needleman and Lora Kolodny point out in another article from the Wall Street Journal, many investors are turning to the Internet to research companies and are basing their decisions on information provided from multiple sources.