Case Study: AIRTAME Funding Decisions and Campaign Success Factors

This case study analyzes the AIRTAME crowdfunding campaign, focusing on the factors that contributed to its success and the strategic decisions made regarding subsequent funding rounds. The analysis highlights the importance of open sourcing for code development, thorough market research to understand crowdfunding best practices, and effective promotional strategies including pre-campaign teasers, social media, and email marketing. The study further examines AIRTAME's choices for securing additional funding, comparing equity-based funding, angel investors, and venture capitalists. The document concludes by arguing that angel investors are the most suitable option for AIRTAME, given their ability to understand the business, offer a long-term perspective, and provide flexible investment terms. References to relevant academic literature support the analysis.

Running head: AIRTAME (THE CROWD)
A Funding Decision for AIRTAME Case
Name of the Student:
Name of the University:

1AIRTAME (THE CROWD)
1. Factors made AIRTAME crowdfunding campaign successful
The factors which came crowdfunding campaign a success for AIRTAME such as:
Open sourcing: The method of open source helps in developing the code for creating
AIRTAME. It helps the project team is making improvement over the code as fast as possible
and add extra features to automatic scaling product to get best video resolution.
Market research: The team collected information on earlier campaigns so that it will
be helpful to search patterns of how to get success in crowdfunding. Through market
research, it is concluded that crowdfunding is not easy to perform while watching videos of
crowdfunding campaigns help to learn best practices.
Code development: By the year 2013, the team performed their research and
understood that code has developed in such a way that the software is recorded image from
the computer as well as reproduce it into other screen (Hulsink et al. 2014).
Promotion: The team published a teasing video before campaign on regular basis for
creating publicity about the product. Social media promotion was also done to aware people
about their product and its features. Emails was also used as promotional channel by sending
them to personal contracts (Pinto, Lopes and Matos 2019). Push marketing strategy helped
the business to create exposure to product, customer awareness about product as well as
product demands.
2. AIRTAME raises next round of funding
AIRTAME decided to market their product through strategic focus for target their
market. The funding team is required to search a way to attract their investment. In second
round of funding, the team decided to go for equity based funding (Kim et al. 2018). This
type of funding will allow AIRTAME to create previous crowdfunding experiences as well as
control over their investments. It will give large pool of smaller investors with smaller stake.

2AIRTAME (THE CROWD)
Jonas decided to forward with campaign by an idea to target the angel investors. The
company should afford losses of their some shares to the investors without any risk as they
are owing 100% of company at the instant.
Marius stated that AIRTAME had made enough profit in the market, and therefore
they should target large venture capitalists. Therefore, they can get more money as compared
to angel investors. It helped them to target large venture capitalists and get more money for
their crowdfunding campaign (Hulsink et al. 2014). The main difficult of this funding was
that AIRTAME has delivered their product in business to consumer market.
Among the three funding options, angel investors is suitable for AIRTAME as it is
less risky. It can understand the business of AIRTAME and also provide with long term view.
It is looking for personal opportunities in addition to investment (Valso 2017). There is no
repayments or interest, therefore the business owners can take investment decisions rapidly.

3AIRTAME (THE CROWD)
References
Hulsink, W., Hrafnsdóttir, L., Nielsen, N. and Zhang, Y., 2014. AirTame: Reward-based
crowdfunding. Rotterdam, Netherlands: Rotterdam School of Management, Erasmus
University.
Kim, A.S., DiPlacido, M.P., Kerns, M.C. and Darnley, R.E., 2018. Industry 4.0: Digitization
in Danish Industry.
Pinto, A.C., Lopes, J.D. and Matos, P.V., 2019. Accountability and Reporting in the Funding
Decision Process of Social Economy. In Modernization and Accountability in the Social
Economy Sector (pp. 76-97). IGI Global.
Valsø, T., 2017. Viewing crowdfunding from a behavioral finance perspective.