Prepare a successful Capital-Raising Roadshow

A basic introduction to capital-raising roadshow presentation

A Capital Raising Roadshow is a number of presentations which are given out by a team in several meetings to. It results in  an IPO or the initial public offering. The stage of the capital-raising roadshow is a kind of a sales platform wherethe potential investors are addressed by the underwriting firm and executive management team of the corporate house, about why to invest in the future ventures of their company and how it could be fruitful.

How does a capital- raising roadshow function?

First of all, the corporate issuer needs to initiate a preliminary prospectus.The team of theunderwriters then scheduleseveral meetings between the corporate house’s senior management and the potentialbrokers and investors, to roll out the negotiation. These meetings where after the negotiations, the investment deal is finalised and the IPO is declared is the capital raising roadshow.

Advantages of a roadshow

Capital-Raising Roadshows are very beneficialguidance for making the order book the underwriters are also hugely benefitted for rightlynegotiating on a marketed offering. These capital-raising roadshows are a one of their kind sales pitching platform for the top tier of the corporate management to meet most of their interested potential investors in a defined time frame and give them a logical and reasonabledemonstration on why they should choose the corporate house for their investment.

Steps to prepare for a very successful capital-raising roadshow

  • Be very careful with the presentation: The capital-raising roadshow must be very to-the-point. It must be compact, having a total of 15-20 pages. The slide-show, specifically, for a capital raising roadshow must be very strategic. It should be prepared to address the team, strategy and track record.Also, be sublime in putting in how better your company is faring in comparison to the other corporate houses. Bring outthe exact goals which your corporate housewants to achieve as of now.Also in a clear and engaging manner, serve the investors the gains both in terms of reputation and future thatachieving the goals will make in the near future.These above points look more or less, like the annual board meeting among the stakeholders of the company, but the difference is that roadshow meetings are more confidential in nature. You have to be very careful about disclosure of information. Give out only those information that has been marked as potentially safe by the business continuity team.Working hand in hand along with a securities lawyer who has a wide knowledge of putting together the roadshows for corporate companies, will definitely help you avoid legal mistakes that can bring a bad name to the company.
  • Use LP friendly terms in the capital raising roadshow: Using LP friendly terms while presenting a capital raising roadshow is very important. It eases the potential investorsconcerns about sensitive topics.The information which is there in the preliminary prospectus issued by the corporate issuer must tally withthe other public sources. Any documented roadshow materials should be carefully drafted by the issuer’s management be scanned by the issuer’s and underwriters’ securities lawyer.
  • Points to highlight before the investors: To make a GP more effective for a capital raising roadshow, it is best to assume for your own benefit that investors on the opposite side have no homework about some critical market parameters, market trends, or consumer behaviours that are directly linked to your corporate houses’market value. You need to highlight your company as it is to a complete stranger. Focus on the points like the origin of the company, the goodwill, the products you have created a trust with your customer base.Also, highlight on the company’s stable relationship with the investors and how both the company and the investors have mutually developed and helped in the growth of both over the years.Convince the investors that they are on a ship that is sailing on full-blown wind and how they can expect high returns. Always remember a well-told story is often stronger than facts and figures.
  • Hire a agency for capital-raising roadshow: It is better to hire an agency to take care of the finer details related to the capital raising roadshow. There are many such third party vendorsoffer servicesand have expertise in the field of presentation of roadshows. Distribution of the responsibility easily makes the company free of the burden related to the making of the presentation, but the corporate houses have to shoulder a huge cost for hiring these vendors. That is why most of the large scale corporate houses only go for this option.
  • Be patient and persistent: In a capital raising roadshow, first of all it is not prudent to expect an immediate answer from the probable investors. The attitude of the team giving the presentation should be politely persistent. To raise capital, the team must be prepared to take notes, this helps in answering concerns of the investors regarding the future roadmap of the company during the review sessions and the team should be very convincingly able to do so.
  • Presentation of the Roadshow: Frequent practice sessions must be organized so that the core members who are participation have a level of comfort while interacting with one another. There should not be any awkward gaps or silences during the whole length of thecapital raising roadshow, especially during thequestion and answer sessions. The team must remember that they are the face of the company and it is through their body language, the investors will find the interest in investing in the company.There must be a order that must be followed. A general greeting by the CEO along with the overview of the company. Then the CFO could take over in highlighting the financial details of the deals which would intrigue the interest of the investors and result in successful capital raising. The CIO could then take over in discussing about the future investment strategies of the company. The roadshow must be free flowing and well rehearsed.


In large corporate houses, there are employed officials and departments solely dedicated for capital raising roadshows.They start scheduling for the capital-raising roadshows well in advance, so the loopholes might be avoided.For start-ups in corporate world too, these tips would help you plan a succesful capital-raising roadshow well in advance.

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