Envestors: How to be an Armchair Investor
You’re an experienced investor. You have a diverse portfolio, you enjoy watching entrepreneurs pitching their investment opportunities and networking with other likeminded individuals. This is how you’ve always done it. Only now you’re in lockdown and trapped indoors, so your investment activities have suddenly ground to a halt, right?
Wrong. Digital has got you covered.
2020 heralds a new era – whether we like it or not – of trying to carry on as normal without leaving our homes and the fundraising and investment world is no different.
Thankfully, technological advances have enabled the armchair investor – definition here Processional investors can join investment networks online, via a purpose-built digital platform, meaning they can still build their portfolios as before, only now from the comfort of their living rooms. Here we show you five, future-proof ways that digital can empower anyone to become a successful armchair investor:
Browse in the bedroom
One advantage is that these platforms typically offer a filtering function. This means that instead of attending dozens of virtual pitching events or manually trawling through hundreds of opportunities, an investor can hone in on deals specifically filtered according to their preferences, whether it’s by sector, stage, geography or, in fact, anything they choose.
- Watch pitches on the porch
Even though investors may no longer be able to attend a presentation in person, they can still watch a savvy entrepreneur – the so-called pyjama pitcher – presenting their investment proposition online. Digital conferencing software means that they can watch, interact and ask questions, in real-time and as they would in person, though they may have to pour their own glass of wine. If the timing is inconvenient, a pitch can be uploaded to a platform, ready to be viewed at a later and more suitable date.
Due diligence in the dining room
All successful investors know that due diligence is a vital part of any decision-making process that involves parting with their hard-earned cash. Now, digital has enabled them to conduct the entire process in their own time and without having to get in touch with a facilitator or middleman. This means they can review management bios, business plans, the company’s valuation and financial forecasts, tax schemes, anything and everything, all through the platform and its built-in Q&A facilities.
Communicate from the couch
Traditionally, management teams have always been notoriously poor at keeping their investors in the loop. In fact, ask any experienced investor about their number one pet peeve; it’s fairly certain that the first thing they’ll say is being ignored by a company post-investment, making them feel like an ATM. Digital, however, has made it easy; through a dedicated investor relations portal, a company can now keep its shareholders updated of all its news – with no excuse not to. This benefits everybody – a consistent line of communication builds a relationship of trust, more crucial than ever in this strange new world of quarantine.
Pledge in the Parlour
Having decided to invest into a company, the armchair investor can make their pledge online and at their convenience, secure in the knowledge that the all regulatory legalities are built-in and covered by the digital platform. The only next step is to put their slippered feet up and wait for the dividends to deliver. And pour another glass, of course.
Want to become an armchair investor? Get in touch here