Retail participation has exploded and transformed public markets. But you'd never know it from the current "best practices" for public offerings. Here's how to change that.
Jim, well said and I agree there's a big opportunity for both IPO candidates and established public to do much more to attract and keep retail investors. With respect, I think companies are doing more than you reflect here - and at Brunswick we've long prioritized retail investor engagement as part of our IPO and IR best practices, which we have continued to evolve and update over the past decade.
Some examples we've seen or helped with in include: Alibaba pioneering the use of infographics in their F-1 prospectus to simply explain their structure and business model, which is now standard practice; Coinbase's Brian Armstrong and Alicia Haas doing a Reddit AMA just before listing; extensive use of retail-investor focused news platforms like Sherwood News and the Schwab Network. And of course, establishing a robust body of content explaining the business on the company's owned channels well ahead of the quiet period. Not to mention developing a clear and compelling video for posting on RetailRoadshow.
I agree that the traditional IR website (and also earnings announcement process) is begging to be reinvented. But I wouldn't base a conclusion about whether companies are engaging retail investors sufficiently primarily on the state of their IR sites -- there's lots more effective ways to go about it. -Darren McDermott, Partner, Brunswick Group
I really appreciate the thoughtfulness of the comment. You're someone whose thinking on this I take seriously and whose work I've seen up close and deeply respect. But I think you're illustrating the gap more than you're closing it.
The examples you cite were all smart tactical moves. But I'm not saying companies and their advisors have never done anything retail-friendly in a process. I'm arguing there isn't a systematic approach, persistent infrastructure, or ongoing engagement model designed for a population that now accounts for 20-40% of daily equity volume and that will own a quarter to a third of these companies within months of listing. There's a meaningful difference between doing something smart for retail investors during an IPO process and building for retail investors as an *ongoing* first-class constituency.
On the IR site point specifically: absolutely, the site alone isn't dispositive, no disagreement there. But when zero companies acknowledge the distinctions and different communications needs of their audiences via their most comprehensive comms channel, it's a signal about priorities. It's also a huge opportunity for the companies willing to think and operate differently.
This is an 'and' situation, not an 'or' one, and it demands greater creativity from all of us advising these companies.
I enjoyed this, thanks for writing. The one note I'd make - Palantir, at least, doesn't have a big owned presence for retail investors on its site because it engages with them in other forums (Twitter, etc). So I'd add to your advice to be mindful of where your retail investors congregate and don't be afraid to go to them directly.
Totally agree. Palantir is probably the best example of a company that actually tries, and Karp's direct engagement with retail investors is a big part of why the stock held through institutional skepticism. The IR site thing is just one piece of it. The larger point is that Palantir is the exception that proves how much room there is for everyone else.
Karp is the only CEO I know who actually takes questions on the quarterly call from randos who submit them online. He’s got a Musk-style army of believers, which few can match. Let’s see the Mag Seven do that.
Jim, well said and I agree there's a big opportunity for both IPO candidates and established public to do much more to attract and keep retail investors. With respect, I think companies are doing more than you reflect here - and at Brunswick we've long prioritized retail investor engagement as part of our IPO and IR best practices, which we have continued to evolve and update over the past decade.
Some examples we've seen or helped with in include: Alibaba pioneering the use of infographics in their F-1 prospectus to simply explain their structure and business model, which is now standard practice; Coinbase's Brian Armstrong and Alicia Haas doing a Reddit AMA just before listing; extensive use of retail-investor focused news platforms like Sherwood News and the Schwab Network. And of course, establishing a robust body of content explaining the business on the company's owned channels well ahead of the quiet period. Not to mention developing a clear and compelling video for posting on RetailRoadshow.
I agree that the traditional IR website (and also earnings announcement process) is begging to be reinvented. But I wouldn't base a conclusion about whether companies are engaging retail investors sufficiently primarily on the state of their IR sites -- there's lots more effective ways to go about it. -Darren McDermott, Partner, Brunswick Group
I really appreciate the thoughtfulness of the comment. You're someone whose thinking on this I take seriously and whose work I've seen up close and deeply respect. But I think you're illustrating the gap more than you're closing it.
The examples you cite were all smart tactical moves. But I'm not saying companies and their advisors have never done anything retail-friendly in a process. I'm arguing there isn't a systematic approach, persistent infrastructure, or ongoing engagement model designed for a population that now accounts for 20-40% of daily equity volume and that will own a quarter to a third of these companies within months of listing. There's a meaningful difference between doing something smart for retail investors during an IPO process and building for retail investors as an *ongoing* first-class constituency.
On the IR site point specifically: absolutely, the site alone isn't dispositive, no disagreement there. But when zero companies acknowledge the distinctions and different communications needs of their audiences via their most comprehensive comms channel, it's a signal about priorities. It's also a huge opportunity for the companies willing to think and operate differently.
This is an 'and' situation, not an 'or' one, and it demands greater creativity from all of us advising these companies.
I enjoyed this, thanks for writing. The one note I'd make - Palantir, at least, doesn't have a big owned presence for retail investors on its site because it engages with them in other forums (Twitter, etc). So I'd add to your advice to be mindful of where your retail investors congregate and don't be afraid to go to them directly.
Totally agree. Palantir is probably the best example of a company that actually tries, and Karp's direct engagement with retail investors is a big part of why the stock held through institutional skepticism. The IR site thing is just one piece of it. The larger point is that Palantir is the exception that proves how much room there is for everyone else.
Karp is the only CEO I know who actually takes questions on the quarterly call from randos who submit them online. He’s got a Musk-style army of believers, which few can match. Let’s see the Mag Seven do that.