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On August 4, 2024, Bitcoin dropped below $50,000 in a span of 24 hours, amidst a crypto plunge that wiped out $367 billion in value.
If that doesn’t show you how volatile the investment industry can be, think again.
Whether or not you’ve invested in Bitcoin or even Dogecoin for fun, market crashes and fluctuations in the investment industry overall have a profound impact on everyone’s lives.
From a sales prospecting point of view, it’s imperative that you’re quick on your feet. You have to be on top of all the breaking news as the market moves as fast as winning the lottery and losing all your money in a single day.
As you might have heard before, high risk yields high reward in this industry. But when it comes to prospecting, there are several strategies you can use to minimize your risk and still close big ticket sales accounts in the investment industry.
We’ve compiled some of the top "alpha" pieces of advice to help you prospect unicorns in the investment management industry to yield the most ROI.
You’ll learn:
- Key trends in the investment industry in 2024
- The types of companies you can find in the investment industry
- How to get the most ROI when prospecting investment clients, step-by-step
Key trends in the investment industry in 2024
“There is no nobility in poverty. I have been a rich man, and I have been a poor man. And I choose rich every f***ing time.”
Jordan Belfort in the Wolf of Wall Street summed up the nature of the investment industry with this single quote: the high-stakes and aggressive nature of investment banking and brokerage firms.
Profit is always the end-game when it comes to this ambitious market, and still stands true as the industry sees a new wave of trends and advancements in 2024.
The industry revolves around money, and the complexity of money can breed systemic changes that are centered on making a profit.
In 2024, the industry is evolving with the help of AI, cryptocurrency, environmental changes, and so much more. Here are a few key trends in the investment industry that you’ll want to keep your finger on the pulse:
Cryptocurrency domination of the investment industry
Over the years, we’ve seen all sorts of news on the volatile nature of the crypto market. From Elon Musk’s meme inspired #Dogecoin cryptocurrency to the early beginnings of BitCoin, the investment industry has been turned upside down by the wave of crypto.
Sooner or later, we might even be able to buy Teslas with Dogecoin.
Institutional adoption of crypto assets is rising, with more funds including Bitcoin, Ethereum, and other digital assets in their portfolios.
Here’s what this means for sales teams looking for investment prospects: Look for opportunities in blockchain infrastructure, DeFi (Decentralized Finance) projects, and regulatory-compliant crypto investment products.
Sustainable and ESG Investing
Environmental, Social, and Governance (ESG) criteria are more critical than ever. Investors are increasingly prioritizing companies with strong ESG practices, reflecting a shift towards sustainable and socially responsible investing.
Keep an eye out for firms integrating ESG metrics into their investment decisions. These key prospects are attracting significant inflows from institutional investors.
AI and machine learning
AI and machine learning are continuing to become an integral part of almost every industry, especially the investment industry–namely transforming investment strategies. From predictive analytics to algorithmic trading, these technologies enable more informed decision-making and efficient portfolio management.
Investment companies that are capitalizing on this key trend are using AI for risk assessment, fraud detection, and personalized investment advice.
Our suggestion? Look for key players in the investment industry that are taking advantage of these new innovations and paving the way for other companies to follow suit.
We still have a long way to go with AI and machine learning as a society; the true disruptive nature of these technologies has yet to be fully realized and we’re just scratching the surface.
So what can we expect? The investment industry can anticipate AI integrating into every facet of investment management, leading to more personalized, efficient, and unbiased investment strategies. The firms that fully lean into the potential of AI, while ensuring ethical use and human collaboration, will be the ones that dominate the investment landscape in the coming years.
The rise of fintech
Maybe you’re not ready to start prospecting the big fish in the investment industry. If that’s the case, there are still many growing areas of investment that you’ll want to keep your eye on, like the rise of fintech. *Cue the Apply Pay purchase ping noise*
Fintech is the shortened name for “financial technology”, technology that’s focused on evolving digital banking, payment systems, and robo-advisors. Some fintech products and companies you may be familiar with include Apply Pay, Venmo, Robinhood, Stripe, PayPal, and AfterPay.
Keep an eye out for fintech startups that streamline financial services and enhance user experience with the latest and greatest technology.
Metaverse and virtual reality
Remember when Apple released their new Apple Vision Pro? The metaverse and virtual reality isn’t just a gimmick. It’s a trend that’s also becoming a significant investment theme for companies developing VR/AR technologies and virtual real estate.
This trend is a bit more niche, but it’s an area of opportunity to capture prospects with early-stage investments in metaverse-related projects for high growth potential.
Decentralized finance (DeFi)
DeFi is an area of the investment industry that goes hand-in-hand with the cryptocurrency and blockchain trend.
Imagine the traditional financial system as a big, old-fashioned bank where you need permission to enter, and a bunch of intermediaries like tellers, managers, and security guards to access your money.
DeFi, or decentralized finance, is like a bustling open-air market where anyone can set up a stall and trade directly with others without the need for a central authority or middlemen. Powered by blockchain technology, DeFi allows you to lend, borrow, and invest your money directly with others using smart contracts—self-executing agreements written in code.
It’s like having an automated, transparent, and secure system where the market runs itself, making financial services more accessible, efficient, and inclusive for everyone.
Not everyone is a huge fan of the DeFi trend, but the companies championing this trend are transforming traditional financial systems in ways that will continue to make waves in the coming years.
Types of companies in the investment industry
“Sell me this pen.”
The Wolf of Wall Street is a prime example of the high-pressure world of sales prospecting and the allure of big financial rewards in the investment industry.
If you’re on the hunt for big, blue-chip companies, you have to learn how to sell even the most simple thing to them. If you’re not able to even sell a pen to someone, learning how to sell more high-ticket services or products will feel like a nut you can’t crack.
The first step in being able to sell something as effectively as Jordan Belfort is knowing who your target market is.
Are you targeting large enterprise level stock brokerage firms? Or local small financial businesses who need a more niche service?
Figure out who you’re talking to first. If you’re not sure where to start, here are some of the most common types of companies you might find in the investment industry:
1. Asset management firms
These companies manage investments on behalf of clients, including mutual funds, hedge funds, and private equity firms.
When it comes to prospecting asset management firms, focus on highlighting your expertise in portfolio optimization and risk management strategies.
Examples: BlackRock and Vanguard
2. Investment banks
Investment banks provide services such as underwriting, facilitating mergers and acquisitions, and market making. They are interested in tools and services that can help them with market analysis, regulatory compliance, and client acquisition.
Investment bank prospects need tools and services that streamline deal-making processes and regulatory compliance.
Examples: Goldman Sachs, JPMorgan Chase
3. Venture capital firms
These firms invest in early-stage companies with high growth potential. They seek detailed market analysis, startup trends, and networking opportunities to discover the next big thing.
VC firms care about the data and trends. They want hard proof that their investments will grow and flourish with the next big thing. Focus on providing insights into emerging markets and innovative startups to this type of investment company.
Examples: Sequoia Capital, Andreessen Horowitz
4. Private equity firms
Private equity firms invest in companies with the goal of restructuring and selling them at a profit. They are interested in industry-specific insights, potential acquisition targets, and operational improvement strategies.
When prospecting private equity firms, focus on providing detailed industry analysis and potential acquisition targets.
Examples: The Carlyle Group, KKR
5. Hedge funds
Hedge funds use various strategies to generate returns for their investors, including long-short equity, market neutral, and event-driven strategies. They look for advanced analytics, real-time data, and sophisticated risk management tools.
Offer hedge funds services related to providing advanced analytics and real-time data solutions.
Examples: Bridgewater Associates, Renaissance Technologies
6. Family offices
Family offices manage the investments and affairs of wealthy families. They seek diversified investment opportunities, estate planning services, and bespoke financial solutions.
Examples: Rockefeller Capital Management, Walton Enterprises
7. Pension funds
These funds manage retirement savings for public and private sector employees. They focus on stable, long-term investment opportunities and risk management.
Examples: CalPERS (California Public Employees' Retirement System), Ontario Teachers' Pension Plan
8. Endowments and foundations
Endowments and foundations manage funds for non-profits, universities, and other institutions. They look for sustainable and socially responsible investment opportunities.
Examples: Harvard University Endowment, Bill & Melinda Gates Foundation
9. Insurance companies
Insurance companies manage large investment portfolios to cover their policy liabilities. They seek fixed income, real estate, and alternative investments to ensure steady returns.
Examples: MetLife, Prudential Financial
10. Brokerage firms
Brokerage firms act as intermediaries between buyers and sellers of securities. They need tools to enhance trading platforms, improve customer service, and ensure regulatory compliance.
Examples: Charles Schwab, E*TRADE
11. Real Estate Investment Trusts (REITs)
REITs own and operate income-generating real estate. They are interested in market analysis, property management solutions, and investment opportunities in the real estate sector.
Examples: Simon Property Group, Prologis
12. Sovereign wealth funds
These are state-owned investment funds that manage national savings. They look for diversified global investment opportunities and macroeconomic analysis.
Examples: Norway's Government Pension Fund Global, Abu Dhabi Investment Authority
When it comes to narrowing down your highest value prospects in the investment industry, consider all the different factors that affect the type of companies and the space they’re operating in.
Understand the type of products or services that each type of company would benefit the most from, keep a pulse on niche industry news that affect your target market, and learn the ins and outs of what their greatest challenges are.
Our suggestion? Try using Seamless.AI’s Intent Data tool to always stay on top of what’s happening in the world of your most valuable prospects. You can set up alerts to get notified on trending topics and intent signals that will help you evaluate the likelihood of your prospects to become a paying customer.
Tips for prospecting investment management companies
Imagine you’re pitching to a large institutional investor.
You start by highlighting your alpha (your ability to outperform the market) and how you manage beta (volatility) to ensure stable returns. You mention your expertise in ESG investing (fishing in clean, sustainable waters) and provide a detailed analysis of their potential ROI (the size and quality of the fish you’ve caught for other clients).
You also discuss how your diversified portfolio (different types of fish) reduces risk, and show your strong track record through your Sharpe Ratio (how well you’ve navigated stormy seas in the past). By speaking their language and demonstrating your expertise, you build confidence and trust, increasing your chances of securing the deal.
The best way to approach prospects in the investment industry is to understand the world they operate in, Speak their language and become an expert in some of their most niche and pressing challenges that you can help solve.
Don’t know where to start?
Here are a few sales prospecting tips for investment clients to help you get started.
1. Leverage niche industry reports
Everyone has access to the same news. Sure, mainstream news is a great conversation starter, but relying solely on mainstream financial news won’t set you apart from the tens or hundreds of other sales reps looking to prospect the same clients.
Start diving into niche industry reports and whitepapers. These often contain valuable insights that aren’t widely known.
Your goal when approaching prospects is to always deliver value. In this case, diving into niche industry reports can provide bits of new knowledge and insights that you can share with your prospects that may pique their interest.
Imagine you’re speaking with a prospect who’s focused on sustainable energy investments. Your chance of closing a major deal with them increases by tenfold if you’re able to reference a niche report on emerging markets in renewable energy. You can give them something new to think about, a new insight that you can ask for their opinion on, or simply position yourself as a knowledgeable contact in their network to rely on for the latest industry knowledge.
2. Join specialized online communities
The investment industry isn’t just about in-person meetings with a suit and tie over fancy cocktails. It’s also difficult to get a hold of more high-profile investment prospects who are probably booked and busy.
Your best bet to get exposure in the investment community is to engage in specialized online communities and forums dedicated to specific investment niches (like crypto or sustainable investing).
But don’t just be a “ghost member” without interacting and providing value. Engage in top threads or discussions, provide insights to build credibility, and share new resources to position yourself as a thought leader in the space.
Prospects who may have never even heard of your company or products will see you as a reliable source of information and grow their interest in what you may have to offer.
Participating in niche investment online communities can be as simple as actively contributing to an investment group on LinkedIn. From there, you can start building relationships that lead to several high-quality leads and eventually, significant deals.
3. Use social listening tools
Don’t wear yourself thin trying to stay on top of all the buzz and noise going on in the investment industry. The key is to keep a pulse on what’s happening in the industry with a smarter and more efficient approach, like using social listening tools.
This cuts down the time you’re spending trying to learn more about the investment industry while being able to efficiently monitor what your prospects are discussing online.
Use social listening tools to help you tailor your approach to prospects’ current interests and challenges.
Here’s an example: Imagine you’re using a social listening tool to see what investments a target company is exploring. With a social listening tool, you may discover that the company is showing an interest in exploring AI investments. You can then use that knowledge to tailor your pitch to highlight your product or service with AI-driven analytics–resulting in securing a meeting with this prospect.
4. Offer educational webinars
Participating in online communities and diving into niche industry reports is just the tip of the iceberg when it comes to providing value to your prospects.
Take it a step further and come up with a plan to offer educational webinars. Start hosting webinars on trending topics within the investment industry to attract and engage potential leads. This positions you as a thought leader and builds trust.
5. Build relationships with industry influencers
Have you heard of the famous quote by Jim Rohn, “You’re the average of the five people you spend the most time with”?
Whether or not you agree with this quote wholeheartedly, the people and entities that you associate yourself with are key to building reputable optics to show your prospects.
Your prospects aren’t just looking at you as an individual or your company alone. They see the types of partnerships and prior connections you already have to make a judgment call on your reputation.
To the average prospect, your reputation relies on your current customers and your affiliations with other thought leaders in the industry.
Start building your reputation by aligning yourself with other big-name thought leaders or influencers in the industry. You can collaborate with others to create more educational content, build your integration stack of partners, and show your prospects that you’re a trustworthy entity.
Always remember that one simple endorsement or a simple introduction can open doors.
Investment industry prospecting in a nutshell…
Prospecting in the investment industry is both an art and a science, requiring a keen understanding of market dynamics, a strategic approach to building relationships, and a relentless pursuit of knowledge.
Lean into niche insights, engage in specialized communities, deliver educational resources, connect with key influencers, and always deliver value for your prospects.
Remember, every connection is a potential gateway to success. Embrace the challenge, stay curious, and let your passion for the industry drive you forward.
🗒️ Want to start prospecting investment companies smarter, not harder? We’ve created a directory of the top investment companies in the US using fresh data updated in real-time using our prospecting AI platform.