# What Is Investor Acquisition Cost (IAC)?

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## Definition

Investor Acquisition Cost (IAC) measures the total cost required to acquire a qualified investor relationship. Unlike traditional customer acquisition cost metrics, IAC focuses on the resources required to attract, educate, nurture, qualify, and engage investors who may ultimately participate in investment opportunities.

## Formula

Total Investor Acquisition Expenses ÷ Number of Qualified Investors Acquired = Investor Acquisition Cost (IAC)

## Full page content

Investor Acquisition Cost, or IAC, is one of the foundational metrics within the Capital Sourcing Partners measurement framework.

 Traditional marketing often focuses on Cost Per Lead or Customer Acquisition Cost. While useful, those measurements frequently fail to capture the complexity of investor acquisition.

 Investors are not customers purchasing products. Investors evaluate opportunities through a process that includes education, trust development, relationship building, due diligence, and confidence formation.

 IAC seeks to measure the true cost of developing qualified investor relationships.

 The metric may include expenses related to:

 - Advertising
- Content creation
- Investor education
- CRM systems
- Events and webinars
- Investor outreach
- Technology platforms
- Investor relations support
 The goal is to provide a more meaningful measurement of investor acquisition efficiency and support better capital allocation decisions.

## Related index

- Metrics index: https://capitalsourcingpartners.com/learn/metrics
- Metrics index markdown: https://capitalsourcingpartners.com/learn/metrics.md