successful equity crowdfunding campaigns(3)
TRANSCRIPT
SUCCESSFUL EQUITYCROWDFUNDINGCAMPAIGNS-A NORDIC REVIEW
PREPARED BY ALINA LUNDQUIST & MICHAL GROMEK
JUNE 2015, FUNDEDBYME.COM
FundedByMe is one of the onlyfull-service crowdfunding platforms,offering capital through equity, loanand reward based crowdfunding.
We have successfully funded some500 companies from 25 countries.
Our user base is a rapidlyexpanding network of more than54 500 investors from over 74
countries around the world.We have local presence in
countries around Europe and inSingapore, with headquarters in
Sweden.For more information, visit
www.fundedbyme.com.
REPRODUCTION AND PUBLISHING IS AUTHORISEDPROVIDED THE SOURCE IS ACKNOWLEDGED.
About
EXECUTIVE SUMMARY:
PREPARED BY FUNDEDBYME.COM
This report provides a review ofEquity Crowdfunding in the Nordics.
It is based on all cases that havebeen “live” on the platform since
2012. It discusses different aspectsof signaling based on netnographicreal time data. Results give generalindicators about which factors makesome campaigns more successfulthan others. This report finds that
there are aspects such as externalcertification that are effective tools
to reach “funding goals”.
This report also investigates thatthe analysis conducted has
limitations, including a small samplesize, different countries and size ofcampaigns. It reflects signals, that
have not been reviewed yet inEquity Crowdfunding such as thecorrelation between Social Media
and campaigns' success, thatrequire further investigation.
METHODOLOGY:
PREPARED BY FUNDEDBYME.COM
The campaign outcome was modelledby means of logistic regression as afunction of various explanatorycontinuous and category variables.
The dependent variable was binary andshowed either a successful orunsuccessful outcome. Successfuloutcome was defined as reaching atleast 80% of the initial funding goal.
The signs of the calculated coefficientswere used as a basis for interpreting thedirection of the relationships betweenthe campaign outcome and explanatoryvariables. Marginal effects at means reflected thechange in the probability of thesuccessful outcome given a one-unitchange in the dependent variableholding all other variables constant attheir means.
EURO IN 2014
*BASED ON THE EUROPEAN ALTERNATIVE FINANCEBENCHMARKING REPORT, ROBERT WARDROP, BRYAN
ZHANG, RAGHAVENDRA RAU AND MIA GRAY. UNIVERSITYOF CAMBRIDGE AND EY. FEBRUARY 2015.
European equitycrowdfunding market size(UK is excluded)*
82.56M
+116% CAGR 2012-14
VOLUME INTHE NORDICS
3.7M
PREPARED BY FUNDEDBYME.COM BASED ON OWNFINANCIAL DATA FROM OCTOBER 2012 - APRIL 2015
CUMULATIVE SUM OFMONEY RAISED IN EURO
± Q4 2012 - Q2015
9.541.842 EURO RAISED
FUNDEDBYME'SDEVELOPMENT
Market share in equitycrowdfunding in theNordics
Compound Annual GrowthRate (CAGR) in equitycrowdfunding between2012 - 2014
CAMPAIGNSSTATISTICS
€122,706
83%
449%
€551 MedianInvestment
Average money raisedper campaign
Average amount ofequity offered14%
Median amount ofinvestors in a campaign 46
Average price pershare € 149
€5,935 Average Investment
SOCIAL MEDIAVS . CAMPAIGNSSUCCESS
10 likes on LinkedInincrease theprobability of successby 6%
10 likes on Facebookincreases the probabilityof success by 5,6%
GENDER HAS NO EFFECTON CAMPAIGNS SUCCESS
FEMALE49,7%
MALE50,3%
PREPARED BY FUNDEDBYME.COM BASED ON OWN NETNOGRAPHY
A link to LinkedIn profilesof the company, on thecampaign page increasesthe probability of successby 32,58%
A link to Facebook'sprofile of the company, on the campaign pageincreases the probabilityof success by 31,67%
CORRELATIONBETWEEN A SUCCESSFUL
CAMPAIGN AND:
Campaigns submitted fromcapital cities are 21,2%more successful than others
NO IMPACT
Team members educatedwith relevant businesseducation increase thesuccess rate of campaignsby 24,98%
Team members withprofessional careers inmanagement and/orconsulting increased thesuccess rate of campaignsby 25,98%
on campaign success rate
Amount of employees within theteam displayed on campaign
Team members holding mastersdegrees
Previous entrepreneurialexperience
EXTERNAL AWARDS ANDRECEIVED FUNDING FROMOTHER SOURCES, DIDINCREASE THE SUCCESSRATE OF THE CAMPAIGNS
Campaigns that haveexternal awards are 27%more likely to succeed
Campaigns that receivedgrants or funding from otherinstitutions are 23% morelikely to be successful
Companies which havebeen mentioned onFundedByMe's blogwere 35% more likely to besuccessful
DOCUMENTS
Uploading market statisticsfrom a reliable sourceincreases the chances ofsuccess by 27%
Uploading of reliablefinancial forecast increasesthe chances of successby 37,3%
THIS REPORT HASBEEN PREPARED BY:
PREPARED BY [email protected], / +46 (0)8-559 207 60
Michal Gromek Head of Int. Financial [email protected]
Alina KoutunBusiness Developer [email protected]