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What is an Investor Database?

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  • Written By: Mary McMahon
  • Edited By: Kristen Osborne
  • Last Modified Date: 24 October 2016
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    Conjecture Corporation
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An investor database is a listing of people involved in investment activity, used for the purpose of developing tailored marketing campaigns. Investor databases are produced by a number of sources, and they tend to be closely guarded, as they are potentially quite valuable. People interested in accessing an investor database need to pay a fee, usually per entry. They are allowed to search by certain parameters, such as looking for investors in specific demographic groups, rather than sifting through the entire database.

Information available through an investor database varies. Names and contact information are provided, along with information about investment history, designed to create a picture of the kinds of investments that interest people on the list. Databases can also collect data about race, marital status, income, and other factors. This information can be used in a variety of ways in marketing campaigns, and is collected through surveys and other means.

People seeking investors may use an investor database to develop a target market and hit those investors with advertising first, with the goal of sparking initial interest to getting an investment off the ground. Specialty products like databases of high net worth investors are available for people seeking a very specific kind of investor, like a philanthropist interested in investing in charitable activities. A list of investors matching the parameters of the search will be returned, and the person can contact investors on that list as desired.

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Individual investors cannot control whether they show up in an investor database, as companies are legally allowed to keep and release information about their customers. In some cases, it may be possible to limit the release of the data, as companies may be required by law in some regions to have opt-out programs where customers can refuse to allow their data to be shared. In cases where databases are compiled by third parties, rather than companies tracking customers, it is harder to opt-out because these parties are not subject to the same legal requirements.

Complete access to an investor database, where people can look through all listed investors, is an option, but it is usually very expensive. People typically need statistics programs and other tools for processing all the database entries, as the information will be overwhelming if people attempt to view it all at once. Individuals with complete access are usually barred from reselling the data they collect, as the original database owner does not want the product to lose value.

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