In emerging industries, innovation unfolds at breakneck speed. Capital ebbs and flows as companies and industries confront the evolving challenge of securing and sustaining investor confidence – working to build a capital stack that will grow their business. In this environment, the value of a cohesive, compelling narrative is immeasurable.
Companies in emerging sectors often struggle to articulate their vision, uses of coveted capital, path to profitability and potential returns on investments in a manner that is compelling and transparent to potential investors. Ensuring your story is competitive and top of mind in a manner tailored to the investment community is key.
The Emerging Space Economy
One example we’ve been watching closely is the space economy. According to Space Capital, over the past 10 years, there has been $283.9B invested into 1,796 unique space companies. It’s been a bumpy ride as funds poured into the sector in 2021 before the market took a risk-off perspective and said capital receded and normalized. This kind of uncertainty is not uncommon in new industries, but companies seeking public or private market capital need to commit to a regular cadence of communication in order to gain mindshare for periods of capital inflow.
While the space ecosystem remains an emerging industry, investor appetites are primed for a niche tech sector with a long-term horizon. The opportunity to leverage satellites for increased broadband capacity, for new data points from Low Earth Orbit (LEO) satellites, space exploration and tourism, and lunar exploration are becoming mainstream considerations. As businesses look to new frontiers in 2024 is the year of new frontiers for businesses, and innovative companies engaged in the space economy need to be sure they are clearly communicating their competitive advantage so customers and partners choose your service and so investors opt to commit their precious capital to you.
Your Raising Capital in an Emerging Industry Roadmap
If you’re in an emerging industry in which public sentiment is still being established, follow this roadmap for capital markets success:
Build Awareness.
You’ll need to build awareness for your brand, but you may also need to educate the market about your sector. Consider the funnel of why someone would want to follow the sector and then what would make them invest with you? What are your unique selling points?
Establish Credibility.
People invest in people. They want to understand the leaders in the company are experts in their field and have sound-decision making skills. Be available, be transparent, be knowledgeable.
Deliver Results.
At the end of the day, investors want to know you will deliver on expectations. Set objectives that are attainable, communicate them clearly and remind markets of them as you achieve them.
An agency well-versed in the space industry, the media following it, sell side analysts, and investors, can help you build brand awareness across a broad landscape to establish visibility and credibility by creating strategic and attainable goals and communicating effectively and consistently to capital markets. Savvy space and satellite economy participants can capture the flag and establish themselves as the investment of choice for the future.
Raising capital in an emerging and sometimes volatile industry can be challenging as you build a track record and communicate your path to profitable growth, relying on partners with experience and a commitment to your success can help. An external communications agency brings an element of objectivity that is often missing in internal teams deeply embedded in the day-to-day operations of the business. By having an external viewpoint, an agency can provide a fresh perspective on how a company’s milestones, achievements, and future plans can translate into an investment story that resonates. Gregory FCA has existing relationships with key stakeholders, including trade and mainstream media and potential investors, which can be leveraged to gain exposure and credibility.
The first step is establishing your profile. Check out one of our success stories here.