Ted Tobiason, Deutsche Bank’s head of equity capital markets for the technology industry, is doing something that would get most investment bankers fired: tweeting about work. He’s the only investment banker authorized by the German firm to have a business-related Twitter account. While he’s no Ashton Kutcher (who has 9.6 million followers) Tobiason has attracted more than 100, including executives at Silicon Valley startups. His first tweet, which went up in January, predicted that there would be more than 40 initial public offerings by technology companies this year. “I want venture capitalists and entrepreneurs to know that our bankers love technology, that we are evangelists and not mercenaries,” says Tobiason, 43, who is based in San Francisco. “Tweeting is a way to show that we are part of the game and that we understand the changes in technology and we are using them.”
Tobiason is a rare bird on Wall Street. Investment banks tend to use social media for marketing and recruiting purposes only. Morgan Stanley, JPMorgan Chase, Goldman Sachs Group, Barclays, and Bank of America (the banks Facebook chose to underwrite its $5 billion IPO) ban investment bankers from using Facebook, Twitter, and other social media on their work computers. One reason: The Securities and Exchange Commission requires banks to monitor and archive employee communications, and doing so on third-party platforms such as Twitter and Facebook is much harder than on corporate e-mail programs.
Banks sometimes permit financial advisers to have business accounts, and investment bankers can have personal social media accounts. Those advising technology companies have found ways to use clients’ products to build professional relationships without violating their firms’ policies. Michael Grimes, global co-head of technology investment banking at Morgan Stanley, plays Zynga’s CityVille and Empires & Allies games on Facebook with company founder Mark Pincus. Zynga chose Morgan Stanley to lead its IPO last year.
Deutsche Bank started using Twitter in 2008 to promote a golf tournament it sponsored in Boston. Tobiason raised the idea of having a professional account in the fall of 2011 and eventually won approval from the communications and legal and compliance departments. “He happened to be at the right place at the right time,” says John Tracey, head of the bank’s brand communications for the Americas. He says the bank expects to say yes to other executives who have asked for permission to tweet.
Tobiason’s tweeting is not off-the-cuff: He can’t write about share offerings Deutsche Bank underwrites, he must clear his tweets through the firm’s communications department, and the bank has software that records his posts. “For Deutsche Bank, it is a great PR and marketing opportunity,” says Joe Ciarallo, vice president of communications at Buddy Media, a New York firm that develops social-media advertising software. He says the bank should let Tobiason tweet on his own, without prescreening, which slows down his posts and keeps him from being part of the Twitter “conversation.” For companies, Ciarallo says, making full use of Twitter is “all about training and trusting employees.”
Tobiason’s sporadic tweets—fewer than 40 so far—focus on the IPO market, commenting on whether the latest offerings are pricing above or below what’s expected. He wrote “Congrats Brightcove #IPO” on Feb. 17 when the Cambridge (Mass.) provider of cloud-based video hosting and publishing services rose 30 percent on its first day of trading.
Cultivating new business is Tobiason’s—and his employer’s—ultimate goal. Deutsche Bank climbed to second place behind Morgan Stanley last year in Bloomberg’s global ranking of underwriters for technology IPOs, up from the fourth spot in 2010. “Our social media and e-commerce clients are changing the way the world communicates,” says Emmanuel Desousa, Deutsche Bank’s global head of Internet and new media banking. “We have to change the way we communicate to stay relevant as Internet and tech bankers.”