INSIGHTS

Three Hard Truths About Email Most Executives Overlook
By Small-Cap Institute This was adapted from an advisory bulletin recently written by the chair of our editorial advisory board, Adam J. Epstein.Most disastrous boardroom...

SCI Exclusives: From Large-Caps to Startups with Tech Veteran Caroline Tsay
This is the second in a new series of live interviews (SCI Exclusives) undertaken by Small-Cap Institute’s (SCI) editorial advisory board member, Amanda Gerut, where SCI...

SCI Exclusives: A Candid Interview with Legendary Fund Manager John W. Rogers, Jr.
This is the first in a new series of live interviews (SCI Exclusives) undertaken by Small-Cap Institute’s Amanda Gerut, where SCI will be spending time together with...

Webinar: Better Investor Meetings with the Buy-side
Small-Cap Institute's founder, David Scher, was hosted by Paul Dorfman, Head of LIstings - NYSE American, for a webinar discussing some of the ways companies can improve...

Memo to Small-Cap CEOs: The “Investor” You Just Met With… Might Not Be an Investor
By Small-Cap InstituteSmall-caps raise between $30 billion to $50 billion annually in the equity capital markets to facilitate expansion and innovation. Nearly every...

It Might be Time for Small-Caps to Start Caring About ESG
Nasdaq data shows it could significantly impact your future ability to attract and retain investors.by Amanda GerutSo far, sustainability and environmental, social, and...

Investors’ Favorite Small-Cap Boardroom Hire
Unlike in most mid- and large-cap companies, it’s common for small-cap companies to be operated and governed by those who are either new to public company roles, or by those who lack significant experience operating and governing public companies.

Examples of Great Small-Cap Boards in Action
Spend enough time in boardrooms, and you will find that transformative governance often starts in innocuous ways. A shift in one board member’s body language may open the...

The Systemic Dilemma for Small-Cap Service Providers
A recent piece in The Wall Street Journal alluded to a fascinating insight: “Companies appear to avoid hiring auditors that have a history of critical audits at other...

CEO Corner with Karen Zaderej, Chairman, CEO, and President of Axogen Corporation
Small-Cap Institute's Amanda Gerut interviews Axogen Corporation's Karen Zaderej. Ms. Zaderej is chairman, CEO, and president of Axogen Corporation (NASDAQ:AXGN). Axogen...
What Every Small-Cap CEO Needs to Know about Shareholder Activism (Part 4 of 4: Activists Are at the Door. Now What?)
by Beatriz Infante Part 1 of this primer covers why small-cap companies can frequently be magnets for activist challenges. Part 2 discusses the different kinds of activist...
What Every Small-Cap CEO Needs to Know about Shareholder Activism (Part 3 of 4: How to Avoid Triggering Activist Activity)
by Beatriz Infante Part 1 of this primer covers why small-cap companies can frequently be magnets for activist challenges. Part 2 discusses the different kinds of activist...
CEO Corner with Garry Ridge, CEO of WD-40 Company
Small-Cap Institute's Amanda Gerut interviews WD-40 CEO, Garry Ridge. Mr. Ridge is president and chief executive officer of the WD-40 Company (NASDAQ:WDFC). WD-40 Company is...

SCI Insights: Candid, Off the Record Q&A with an Institutional Investor & Board Member
Public company boards, whether they are listed or not, are supposed to be selected predominantly by independent board members that make up the nominating/governance committee of a board. Sadly, in most small-cap companies, it’s the CEO who personally selects board members. Since board members are supposed to oversee the manner in which the CEO and others operate the company, it’s a glaring problem, as friends don’t typically do a great job objectively overseeing their friends.

SCI Book Highlights: The Imperfect Board Member – Discovering the Seven Disciplines of Governance Excellence
SCI Book Highlights The Imperfect Board Member Discovering the Seven Disciplines of Governance ExcellenceDescription [excerpted from the book]: Meet David Slater. He is an...
CEO Corner with Billy Prim, Founder of Blue Rhino and Primo Water
Small-Cap Institute's Amanda Gerut interviews renowned small-cap CEO, Billy Prim. Mr. Prim founded Blue Rhino, which was ultimately acquired for $340m. Subsequently, Mr....

An M&A Process That Creates Value: What Every CEO Should Know (Part 1 of 3 – Planning and Strategy)
Organic growth can be slow and hard to come by. In sectors that are periodically most affected by political uncertainty, trade disputes, and other geopolitical changes, customers can end up deferring their buying decisions, which makes new revenue elusive. In other instances, revenue expansion requires substantial investment in R&D that may not pay off for years. Sometimes, growth is constrained by the inability to attract needed talent or the absence of important intellectual property. With growth an imperative, some small-cap CEOs turn to mergers and acquisitions (M&A) as a solution.

Reg A+ Mini IPOs and Institutional Investors – A Reality Check
There have been a number of “mini- IPOs” utilizing Regulation A+ in the
last couple of years. One clear pattern has emerged thus far: institutional investors
have taken little to no part in these IPOs for several reasons that have gone largely
unsaid.

What Most Small-Cap Leaders Get Wrong About Trading Volume
Few things matter more to thousands of small-cap companies than trading volume. And yet, few aspects are more misunderstood. This article discusses five critical concepts about trading volume that small-cap officers and directors routinely misunderstand, hurting shareholders in the process (including, financings, M&A, where trading volume comes from, and where it doesn’t come from).

Most Board Members Underestimate Two Key Risks
Seated and prospective board members commonly focus on one key risk of being a public company board member that isn’t statistically significant, and ignore two of the biggest risks they actually face.
SUBSCRIBER CONTENT
Pandemic Teach-In: Small-Cap Leaders Weigh in on Leadership
By Small-Cap Institute We reached out to small-cap leaders both inside and outside the confines of Small-Cap Institute to share some of their thoughts about operating and governing during the business challenges created by COVID-19. What resulted was an instructive...

Cybersecurity Pitfalls to Avoid While Working from Home
A chief information security officer weighs in with practical advice and red flags to watch for while working from home. By Amanda Gerut As companies continue in remote-work mode, the cybersecurity landscape is undergoing massive shifts. For small-cap companies,...

Small-Cap Institute’s 2020 Diversity Report
by Small-Cap Institute Small-Cap Institute’s board diversity initiative is designed to educate small-cap boards about how to efficiently locate board candidates with greater thought diversity. Many experienced small-cap investors concur that boards that are comprised...
Board Compensation in Small-Cap Life Sciences Companies: The Elusive Data
Nearly 80 percent of public companies in the United States have market capitalizations[i] below $500 million. Despite the sheer number of small-cap[ii] companies, once you descend below $500 million market capitalization, reliable, constructive[iii], board...
Investor Relations: Hiring the Right Firm and Setting Expectations
Many small-cap companies view investor relations (IR) as a necessary evil, or simply a cost of being a public company. Consequently, they do a poor job of purchasing IR services, and cycle restlessly between different firms. But it doesn’t have to be this way, and...
There Are Good Reasons Why Most Small-Cap Buy-Backs Are Ignored… Or Worse
Small-cap companies undertake a variety of measures – often under pressure from shorter-term investors or misinformed service providers – aimed at increasing share price sooner versus later. One of them is stock buy-backs. But more often than not, officers and...
Memo to Small-Cap Boards: Don’t Outsource Your Proxy Filings to Lawyers
Considering that greater than 80 percent of shareholder activist campaigns each year are waged against small-cap companies, it is critical for small-caps to communicate clearly about the issues investors care most about. Notwithstanding the fact that annual proxy...
Non-Deal Roadshows: A Primer
by James CarbonaraWhat is an NDR (non-deal roadshow)A non-deal roadshow, or NDR, is a series of investor meetings not associated with an active deal or active financings. That said, if you raise money in the future, investors you meet with on an NDR are potentially...
There’s Only One Replicable Way to Select the Right Investment Bankers: Start with Data
Small-cap companies choose investment bankers for many reasons: “they showed a lot of interest in us.” “they really seem to ‘get’ what we do.” “they’ve done our last 4 financings.” “a banker who we’ve worked with in the past, just joined this bank.” “they always...
Selecting ATM Bankers
At-the-market offerings (ATMs) are unique financing mechanisms, because stock is sold intraday – without a fixed price – into the natural flow of trading. Unlike other financing mechanisms, ATMs provide issuers with a high degree of control over the timing, size, and...