Sizable: Crowdfunding Campaign! …Again

Case Solution

Nancy Huyghebaert, Olga Kandinskaia
North American Case Research Association (NACRA) ()

The Sizable Case represents a decision-making situation. The case is in Brussels, at the beginning of November 2017. Marie Martens was the new CEO of the start-up Sizable, a specialist in men’s underwear made of bamboo, eucalyptus and organic organic products. cotton. Since its inception in January 2015, the company had shown high growth potential and Martens was confident that by further scaling the business, Sizable could put itself in a position where it would be highly profitable. Martens wasn’t the only one who believed in Sizable’s attractive prospects. Since March 2015, several investors had put their money at risk, either directly as private investors in the company or through the company’s three crowdfunding campaigns. In November 2017, Sizable needed additional financing of 100,000 euros. Together with the rest of the management team, Martens had drawn up a business plan and suggested immediate action to secure additional funding in November. While the decision was being made to move on to a new crowdfunding campaign, Martens was concerned about the risks of a fourth round of crowdfunding. Failure would not only mean a lack of money, but also a tarnished reputation. Martens wondered how he could make this campaign even more successful than previous rounds. He had several concerns: first, how would the market react to the change in management team, now that the company is led by an executive director; secondly, if you are using a different crowdfunding platform or if you want to trust one of the platforms used in the past; third, he could address typical investor concerns about breakeven and dilution; and finally, what would be the best price of the shares. He had to make a decision on these questions very quickly, as the new crowdfunding round was supposed to start this month.

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