Investors take a few minutes to decide whether a company is worth a closer look. The equity story is what they should walk away with: a short, credible answer to why the share is worth owning.
For smaller listed companies, it matters even more. There are rarely many analysts telling your story for you, so you have to tell it yourselves.
In short
- An equity story is the company's investment case in short form: what you do, why you win and where you are heading.
- It should take a minute to tell and fit on one page.
- It is not a legal requirement, but it must be consistent with what you disclose under the rules.
- It is used everywhere: in the annual report, the investor presentation, the IR website and whenever management talks to investors.
What is an equity story?
An equity story answers one question from the investor's side: why should I own this share, and why now? It is not a strategy, a mission statement or a sales pitch. It is the short version of the investment case, written so an investor can repeat it to a colleague.
The five building blocks
| Building block | The investor's question |
|---|---|
| Market | What problem do you solve, and how big is the market? |
| Position | Why do you win against the competition? |
| Business model | How do you make money, and can it scale? |
| Direction | Where are you going, and how can investors track progress? |
| Risk and capital | What has to go right, what could go wrong, and do you have the money for it? |
The last building block is often left out. That is a mistake. Investors know a growth company carries risk. An equity story that addresses it head-on is more credible than one that pretends it is not there.
An example
Here is an equity story for a fictional First North company that makes software for water utilities:
Many water utilities lose water through leaks they only discover once the damage is done. Our software finds leaks using data the utilities already have, with no new hardware. We earn recurring subscription revenue with low churn, and each new customer costs us almost nothing to serve. We have 40 customers in Denmark and plan to expand to Sweden and Norway over the next three years. The IPO proceeds fund the plan until we reach positive operating results, and the biggest risk is how quickly public-sector customers make decisions.
Five sentences, and all five building blocks are there. Note that the example uses numbers and a concrete plan instead of words like "leading" and "innovative".
How to write your equity story
- Start with the investor's questions. Write down the ten questions you get most often in investor meetings. The equity story should answer the most important ones.
- Collect the evidence. Every claim needs a number, a customer or a milestone behind it.
- Write one page. First five sentences, then one page of detail. If it does not fit on one page, it is not sharp enough yet.
- Test it. Tell it to someone who does not know the company and ask them to repeat it. Whatever they do not remember is either not important enough or not clear enough.
- Use it everywhere. Make it the common thread in the annual report, half-year report, investor presentation, IR website and company announcements.
Where to use the equity story
- Annual report: in the CEO letter, the strategy section and the management review. This is where investors read it most closely.
- Half-year report: as a short section on where you stand against the plan.
- Investor presentation: as the first three to five slides.
- IR website: at the top, so new investors understand the company in a minute.
- Management's own communication: in investor meetings, interviews and on LinkedIn.
Common mistakes
- Too long. A four-page equity story is a strategy, not a story.
- Claims without evidence. "Market-leading" without numbers weakens credibility instead of building it.
- Targets that are not followed up. If you promise something in the annual report, the half-year report should say where you stand.
- A new story every time. Investors lose trust if the narrative changes from report to report without explanation.
- Hidden risks. Investors find them anyway.
What the rules say
No rule requires an equity story. But everything you tell investors must be consistent with your disclosure obligations:
- Inside information comes first. Under the EU Market Abuse Regulation (MAR), inside information must be published as soon as possible (Article 17), and it must not be disclosed unlawfully, for example in an investor meeting (Articles 10 and 14). MAR applies in full on First North. The equity story should therefore only build on information that is already public.
- Newly listed companies have a head start. The Company Description for a First North listing must describe, among other things, the business model, competitive position, main markets, most significant risks and future prospects (Rulebook, 3.2.1). That is the raw material for an equity story.
- Forward-looking statements commit you. Published targets and expectations must be followed up. If they change significantly, the change itself may be inside information that has to be published.
Checklist
- Takes a minute to tell and fits on one page
- Covers market, position, business model, direction, and risk and capital
- Every claim has a number, a customer or a milestone behind it
- Builds only on published information
- Runs through the annual report, half-year report, investor presentation and IR website
- Targets from the last report are followed up
The equity story is often the first thing we work on when we produce an annual report. Read more about our investor relations work, or see our guide to annual reports on First North Denmark.
Sources
- Nasdaq: First North MTF Rules (opens in a new tab) (always lists the rulebook currently in force)
- Nasdaq First North Growth Market Rulebook for Issuers of Shares, 1 October 2026 (opens in a new tab), the version this article is based on (sections 3.2.1 and 4.1)
- Market Abuse Regulation (EU) No 596/2014 (opens in a new tab), Articles 10, 14 and 17
About this article: The content is general information, not legal, accounting or other professional advice. It reflects the rules as they stood when it was published on 22 October 2026, and rules and practice may have changed since. Venari Digital cannot be held liable for decisions made on the basis of this content. Always consult your Certified Adviser, auditor or legal adviser before acting.