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Investor Targeting

Hansson, Fredrik and Wikman, Olof (2017) MIO920
Production Management
Abstract
Introduction: New technology has allowed for alternative nancing methods
to arise. In equity crowdfunding anyone is allowed to invest in unlisted
growth companies through an online platform, which gives companies access
to previously unavailable capital and allows individuals to take part of the
company's journey earlier on. Having a crowd of hundreds or thousands as
an owner can bring many benets apart from the capital. Dierent investors
contribute with dierent value which makes it important for the fundingseeking
companies to dene what investor types they want to target.
The purpose of this study is to dene the equity crowdfunding pre-funding
process, investigate who the equity crowdfunding investors are, identify target
groups... (More)
Introduction: New technology has allowed for alternative nancing methods
to arise. In equity crowdfunding anyone is allowed to invest in unlisted
growth companies through an online platform, which gives companies access
to previously unavailable capital and allows individuals to take part of the
company's journey earlier on. Having a crowd of hundreds or thousands as
an owner can bring many benets apart from the capital. Dierent investors
contribute with dierent value which makes it important for the fundingseeking
companies to dene what investor types they want to target.
The purpose of this study is to dene the equity crowdfunding pre-funding
process, investigate who the equity crowdfunding investors are, identify target
groups that are used in equity crowdfunding campaigns and to explore
the dierent investors' contribution to the funded company.
Methodology: The study is a case study of a Swedish equity crowdfunding
platform called Platform X and eight of its funding campaigns. The primary
data consists of both qualitative interviews and quantitative data. The
interviews were held with both representatives from the funded companies
and from the studied platform platform Platform X. The data came from
Platform X's database. The secondary data was gathered in a literature
study and was the foundation of the theoretical framework. An analysis of
the empirical ndings with a base in the theoretical framework result in the
conclusions.
Theoretical Framework: The theory chapter rst positions equity crowdfunding
in a theoretical context and relates it to other nancial alternatives
as well as distinguishing it from other crowdfunding types. Theory about
equity crowdfunding and its actors is then presented together with how the
process looks like. The theory is concluded by presenting relevant targeting
theory, both general and specic to equity crowdfunding.
Empirical Study: The empirical study rst presents Platform X and its
unique setup of equity crowdfunding, including for example holding companies
and post-funding stock trading. The eight funded companies are then
brie
y introduced. Characteristics of the crowd investors registered on Platform
X's are presented in various charts. The cases studied are then introi
duced and the funding campaign described in more detail. Most notably, the
target groups that were used for each campaign are listed and the pre-funding
processes are described.
Conclusions: The thesis gives insights on how the equity crowdfunding
process looks like. A process map with the most important phases and milestones
is presented, describing the dierent actors' involvement and also the
average time-frame.
Further, the study has investigated who the investors in equity crowdfunding
are. The study shows that the crowd is relatively young - the largest
generation represented is Millennials (born in 1981-1995). Still, smaller and
bigger nancially driven investors are dominating but since many investors
only have invested in one company it indicates a presence of company specic
fans and customers. The ndings also show that investors in close proximity
of the funded company, local investors, can be a big investor group.
By studying eight funding campaigns the thesis has identied seven target
groups in equity crowdfunding, namely; Fans and customers, Big investors,
Small active investors, Business partners, Employees, Friends and family and
Locavestors. The identied target groups can be used as a foundation for
targeting activities in equity crowdfunding.
The investor contribution has not been possible to explore in a satisfying way.
Many of the studied cases were funded recently which made it hard to see
the contributions thus far. The thesis gives some indications on the potential
contribution of both ambassadorship and business partner collaboration. (Less)
Please use this url to cite or link to this publication:
author
Hansson, Fredrik and Wikman, Olof
supervisor
organization
course
MIO920
year
type
M1 - University Diploma
subject
keywords
Investor targeting, nancing method, nancing process
other publication id
17/5573
language
English
id
8919194
date added to LUP
2017-06-27 15:38:36
date last changed
2017-06-27 15:38:36
@misc{8919194,
  abstract     = {Introduction: New technology has allowed for alternative nancing methods
to arise. In equity crowdfunding anyone is allowed to invest in unlisted
growth companies through an online platform, which gives companies access
to previously unavailable capital and allows individuals to take part of the
company's journey earlier on. Having a crowd of hundreds or thousands as
an owner can bring many benets apart from the capital. Dierent investors
contribute with dierent value which makes it important for the fundingseeking
companies to dene what investor types they want to target.
The purpose of this study is to dene the equity crowdfunding pre-funding
process, investigate who the equity crowdfunding investors are, identify target
groups that are used in equity crowdfunding campaigns and to explore
the dierent investors' contribution to the funded company.
Methodology: The study is a case study of a Swedish equity crowdfunding
platform called Platform X and eight of its funding campaigns. The primary
data consists of both qualitative interviews and quantitative data. The
interviews were held with both representatives from the funded companies
and from the studied platform platform Platform X. The data came from
Platform X's database. The secondary data was gathered in a literature
study and was the foundation of the theoretical framework. An analysis of
the empirical ndings with a base in the theoretical framework result in the
conclusions.
Theoretical Framework: The theory chapter rst positions equity crowdfunding
in a theoretical context and relates it to other nancial alternatives
as well as distinguishing it from other crowdfunding types. Theory about
equity crowdfunding and its actors is then presented together with how the
process looks like. The theory is concluded by presenting relevant targeting
theory, both general and specic to equity crowdfunding.
Empirical Study: The empirical study rst presents Platform X and its
unique setup of equity crowdfunding, including for example holding companies
and post-funding stock trading. The eight funded companies are then
brie
y introduced. Characteristics of the crowd investors registered on Platform
X's are presented in various charts. The cases studied are then introi
duced and the funding campaign described in more detail. Most notably, the
target groups that were used for each campaign are listed and the pre-funding
processes are described.
Conclusions: The thesis gives insights on how the equity crowdfunding
process looks like. A process map with the most important phases and milestones
is presented, describing the dierent actors' involvement and also the
average time-frame.
Further, the study has investigated who the investors in equity crowdfunding
are. The study shows that the crowd is relatively young - the largest
generation represented is Millennials (born in 1981-1995). Still, smaller and
bigger nancially driven investors are dominating but since many investors
only have invested in one company it indicates a presence of company specic
fans and customers. The ndings also show that investors in close proximity
of the funded company, local investors, can be a big investor group.
By studying eight funding campaigns the thesis has identied seven target
groups in equity crowdfunding, namely; Fans and customers, Big investors,
Small active investors, Business partners, Employees, Friends and family and
Locavestors. The identied target groups can be used as a foundation for
targeting activities in equity crowdfunding.
The investor contribution has not been possible to explore in a satisfying way.
Many of the studied cases were funded recently which made it hard to see
the contributions thus far. The thesis gives some indications on the potential
contribution of both ambassadorship and business partner collaboration.},
  author       = {Hansson, Fredrik and Wikman, Olof},
  keyword      = {Investor targeting,nancing method,nancing process},
  language     = {eng},
  note         = {Student Paper},
  title        = {Investor Targeting},
  year         = {2017},
}