Case Study: AIRTAME's Funding Decision in Financial Management

This case study explores AIRTAME's funding decisions, focusing on their successful crowdfunding campaigns and the strategic choices they faced. The initial crowdfunding campaign played a crucial role in raising capital and generating publicity, attracting investors, media attention, and skilled employees. Indiegogo's invitation to the International CES (Consumer Electronics Show) and the subsequent award significantly boosted AIRTAME's visibility and sales. The company's pre-campaign preparations, including gathering information from previous events and creating product hype, contributed to their success. As AIRTAME considers future funding options, including equity-based crowdfunding and angel investors, the case study highlights the importance of understanding market reactions and leveraging media exposure. The analysis draws upon academic research to contextualize AIRTAME's experiences within broader trends in entrepreneurial finance and venture capital.

Running head: FUNDING DECISION FOR AIRTAME
FUNDING DECISION FOR AIRTAME
Name of the Student
Name of the University
Author Note

1FUNDING DECISION FOR AIRTAME
Response to Question 1
The main theme of the case study revolves around the need and importance for
crowdfunding (Hulsink 2016). This is clearly discussed in the middle and last part of the case
study. The members of Airtame spent a lot of time in planning the crowdfunfing event that
would help their startup company to come in the limelight. It is this event that attracts the
attention of many investors, media and people that can make their product popular. Even at
the end of the case study the members are planning to go for a second round of crowdfunding
that would hep them to convey their ideas to the public. It is during crowdfunding that the
sales rises and people can directly interact with the members of the company and know their
future plans. Crowdfunding also helps in attracting skilled employees to the company.
Resposne to Question 2
Indiegogo invited AIRTAME to join the International CES (Consumer Electronics
Show) awards that was held in Las Vegas which is one of the recognized shows for the
upcoming technologies. Their funds raised incredibly and they also received an award for the
best startup company. CES award helped airtame to win the attention of media, their name
was mentioned in renowned magazines of Forbes and Business Insider as well as attracted
employees who were skilled. They also witnessed a growth in sales of US$800,000. Had they
not received the award their sales wouldn’t have risen and people would not recognize their
products.
Response to Question 3
Airtame before the funding campaign collected information of previous events to see
how the crowdfunding campaign were successful. A unique code was developed for the

2FUNDING DECISION FOR AIRTAME
products. A teaser and Facebook post was also circulated to create a hype about the product.
People could test the products in the booths and see how the products could copy from one to
multiple screens, that garnered positive response from the audience. Howeve, winning the
CES award was a crucial factor for the success of the campaign. They were recognized by
leading journals, and media channels that attracted skilled employees. These are some of the
factors that made AIRTAME crowdfunding successful.
Response to Question 4
AIRTAME wanted go for crowdfundig based on equity. This would help AIRTAME
improve their earlier crowdfunding campaign and attract large number of small investors and
each would have a small stake. Jonas, one of the owner of the company said they should
target angel investors as they still own 100% of the company so they can take a risk of losing
some shares to the investors (Cumming and Zhang 2019). Brain beleievd in capitalist venture
for their second round of funding and pay attention on production as well as marketing
(Klausner and Litvak 2017). Airtame should go for equity based crowdfunding as it raises
money for a startup company (Hagedorn and Pinkwart 2016). It will provide credibility while
approaching the angel investors. This method helps in understanding the reaction of the user
as well as provide with an analysis of the market. It also helps in generating free media
exposure that will be beneficial for the company. It may also reduce the risk as several
investors are involved who invest at low levels.

3FUNDING DECISION FOR AIRTAME
References
Cumming, D. and Zhang, M., 2019. Angel investors around the world. Journal of
International Business Studies, 50(5), pp.692-719.
Hagedorn, A. and Pinkwart, A., 2016. The financing process of equity-based crowdfunding:
An empirical analysis. In Crowdfunding in Europe (pp. 71-85). Springer, Cham.
Hulsink, W., Hrafnsdóttir, L., Nielsen, N. and Zhang, Y., 2016. A Funding Decision for
AirTame.
Klausner, M. and Litvak, K., 2017. What economists have taught us about venture capital
contracting. In Bridging the Entrepreneurial Financing Gap (pp. 54-74). Routledge.