“Can’t I just pay you a 1 – 3% capital raising fee if you find us investors? Why do I need to invest in a PR strategy to engage potential investors?” 

This was a question which was recently posed to us by a potential client and we felt it was an important topic to unpack. 

In South Africa’s evolving financial landscape, public relations has become a critical component of capital-raising strategies. While financials and projections remain essential, they are not always enough to secure investment. Investors seek more than just numbers—they want to understand a company’s vision, leadership, and market potential. A well-crafted narrative can transform a standard investment proposal into a compelling opportunity, helping businesses distinguish themselves in a highly competitive market.

JSE, Cape Town Stock Exchange (CTSE) or Venture Capital – the challenge is real

Whether you are listed on the JSE, the CTSE or seeking venture capital funding, we are well aware that there is limited liquidity in investment markets in South Africa. Our CEO Marc Ashton, wrote a column for Daily Maverick where he highlighted the fact that of the 270 shares on the JSE – less than 30 are covered by analysts. More recently, he wrote a thought leadership piece looking at the de-listing of African Rainbow Capital – even with the backing of one of South Africa’s richest men, it is not easy to build a compelling investment story in South Africa.  

It is not all bad news. 

Insights from the Southern African Venture Capital and Private Equity Association (SAVCA) highlight the importance of strategic communication in attracting investment. The SAVCA 2024 Venture Capital Industry Survey reported that R3.2bn was invested into 94 entities with 72 investment funds participating. Over half of these investments were directed towards seed or start-up stage businesses, underscoring the necessity for strong PR strategies to stand out in an increasingly crowded space. 

While many companies understand the importance of investor relations, fewer appreciate the role public relations plays in shaping investor sentiment. PR is often dismissed as a tool for media exposure, but in reality, it is a fundamental mechanism for shaping perceptions, building trust, and managing reputation. Investors evaluate more than financials; they assess leadership, industry standing, and growth potential. A company that communicates clearly and consistently across multiple platforms is more likely to build confidence among investors. Transparency plays a vital role in investment decisions, and companies that openly share their milestones, challenges, and industry positioning create stronger relationships with stakeholders. Without strategic PR, even a well-prepared investor pitch can struggle to gain traction, particularly in an environment where businesses are competing for attention. 

A weak or inconsistent public profile can raise doubts during investor due diligence, while a well-managed reputation can reassure investors that they are making the right decision.

For businesses seeking investment, integrating PR into their capital-raising strategy is essential. A well-structured PR plan ensures consistent messaging across media platforms, investor presentations, and industry engagements. Positioning executives as thought leaders through opinion pieces, media interviews, and industry panels helps to enhance credibility. A strong digital presence, particularly on LinkedIn, ensures that investors become familiar with a business before they receive its pitch deck. Messaging should also be tailored to different stages of the fundraising process. Before seeking funding, a business should establish credibility through media visibility and thought leadership. During fundraising, targeted exposure in financial and investment-focused media is crucial. Once funding has been secured, maintaining investor confidence through regular updates and continued public engagement remains just as important as the initial outreach.

To fully leverage PR in capital raising, businesses should focus on the following key components:

• Define your story – Investors need more than just numbers; they need to understand your company’s mission, vision, and the opportunity it presents. A strong narrative highlighting market potential and company milestones is essential.
• Engage the right media channels – From business publications to financial podcasts, ensuring your message reaches the right audience is crucial. Targeted media exposure helps investors stay informed and builds credibility.
• Leverage thought leadership – Positioning executives as industry experts through op-eds, interviews, and speaking engagements at industry conferences enhances investor confidence.
• Utilise digital platforms – Social media, newsletters, and content marketing play a vital role in engaging investors and maintaining transparency. Regular updates through these channels ensure that investors remain informed about company progress.
• Crisis communication planning – Proactively preparing for potential crises ensures that companies can respond effectively, mitigating any damage to investor confidence.
• Ensure consistent messaging – Mixed messages create uncertainty among investors. A well-coordinated PR strategy ensures that communications remain aligned across all channels, from press releases to investor briefings.

Video story-telling is increasingly important in Investor Communications

The growing importance of digital content means that businesses should also consider how they communicate their value through video. According to SAVCA, companies that incorporate video storytelling into their pitch presentations experience significantly higher engagement from investors. Video content allows businesses to showcase their leadership team, communicate their vision in a more engaging format, and provide investors with a deeper understanding of their operations. High-impact investor communication videos could include insights from industry reports that provide market-backed data, founder-led narratives that go beyond traditional presentations, and market education content that positions businesses as thought leaders. The ability to convey complex information in a visually compelling way can make a significant difference in capturing investor interest.

Public Relations and Investor Relations / Investor Communications are inter-linked

Public relations and investor relations, though distinct, work together to shape how a company is perceived by potential investors. While investor relations focus on financial disclosures, compliance, and direct engagement with stakeholders, public relations ensures that these financial milestones are framed within a compelling narrative. Without a strategic PR approach, even the most impressive financials may fail to capture investor attention. By integrating PR with investor relations, businesses can create a holistic communication strategy that builds trust, attracts funding, and sustains long-term investor confidence.

South Africa’s investment landscape is evolving, and businesses that overlook strategic communication in their capital-raising efforts risk being overshadowed by competitors. Raising capital is not just a financial exercise—it is about credibility, perception, and storytelling. Investors do not just fund numbers; they fund people, brands, and narratives they trust. The businesses that win at capital raising are those that control their story, manage their reputation, and proactively shape how they are perceived in the market.

For any company looking to secure investment, the question is simple: is your PR strategy as strong as your financials? If not, it may be the missing piece that stands between you and your next funding round.

Support your capital raising activities through strategic PR

If you would like assistance developing compelling PR or collateral to support your capital raising activities, please do not hesitate to contact us.