Unlocking the power of LinkedIn: Why Every Investor Needs To Be On The Platform

According to various sources, at least 60% of investors—if not considerably more—rely on social media as a source of information and as a vehicle to establish professional connections. Despite this, there is, still, a group of skeptics who justify their absence from platforms like LinkedIn with long-standing stereotypes, including the belief that those who are active on social networks do not have time to do the real work. 

This column will bust these myths by explaining how an investor’s presence in LinkedIn can be critical for success, and share some actionable insights to boost your profile and your potential results. 

Five ways in which investors can benefit from LinkedIn

#1: Stay updated about market developments and key players

Keeping an eye on the prevailing market conditions is an essential element of an investor’s job. Through its personalized news feature, LinkedIn allows you to choose strictly the type of information you need, and, because so many investors and strategic players have a presence there, you will likely learn about the latest happenings there before they appear in traditional media. Even PR specialists and journalists themselves have acknowledged this trend. 

#2: Conduct in-depth research

LinkedIn is one of the best tools to learn more about prospective partners, and to keep track of what they have been doing before jumping into a professional collaboration. Beyond what they post or what their profile says, you can learn more about a person from the type of comments they leave, the people whom they interact with more often, and their interests. Other people also share fragments of their personal life with their professional network. 

For example, one of my friends frequently writes about his family, shares his plans, and comments on interesting events taking place around the world. Because all of his posts have such a deep personal touch, this makes it easier for those who are looking to connect with him. 

#3: Chose an investment route and look for new investment opportunities

A study revealed that 23% of European investors rated LinkedIn above the Financial Times when it comes to deep subject matter education. It means, the platform can be a great resource to find new investment opportunities and become more acquainted with a particular sector. By joining relevant investment groups, connecting with industry professionals, and engaging with their content, you can find groundbreaking projects in a wide array of target markets, and define a new investment route or further strengthen your existing one. 

#4: Secure warm introductions to targeted contacts

This is, by the way, my favorite way to use LinkedIn. The platform can serve as an expansive hub, a constantly-growing address book where you can find and connect with the people you need through mutual connections. If you need to reach out to someone, look at whether you have any contacts in common. Then you can write to those people and ask them for an intro or for advice on how to connect with a particular person. 

To make your initial approach easier, also leverage LinkedIn’s capabilities to see what your target contacts are looking at, where they comment, and the type of content they share. Identifying these commonalities will help you build rapport once the connection takes place. 

#5: Strengthen your personal brand and reputation

In today’s world, for the best founders, capital is not enough. In order to get access to the best deals, you need to bring substantially more to the table, including mentorship and strategic support to guide them as they navigate the shifting waters of entrepreneurship. Just as you are researching an entrepreneur’s path before investing in them, they are also actively learning more about you. The bottom line is that, if you want to join promising projects and big names, you must have a big name too. 

To do this, you need to strengthen your public profile. As an investor, you are a key stakeholder in any project you join. Having a solid and dynamic online presence will help any company that you invest in, and drive up your portfolio’s success. 

Conclusion

Even if, as discussed, LinkedIn has risen to prominence as the professional network of choice around the world, there are still investors who doubt its effectiveness and do not look at the platform as a key tool for growing their business. However, its power goes beyond the obvious. As an investor, it can help you stay updated about market developments and strategic players, provide you with valuable information when conducting research, and help you expand your portfolio. It can also solidify your personal brand, and be a catalyst to grow your network. Ultimately, leveraging LinkedIn the right way can play a critical role in your portfolio’s success, and position you as a highly sought-after investor that founders are vying to have on board.

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.