Case 1:
Sizeable: Crowdfunding campaign!
... again
Maastricht University
School of Business and Economics
Maastricht, 15.11.2021
Entrepreneurial Finance, EBC4181,
Damiani, Matteo
Case I: Sizeable: Crowdfunding cam-
paign!... again
Academic Year 2021/22
,Table of contents
1. Introduction ............................................................................................................................ 3
2. Sizeable and the crowdfunding campaign ............................................................................. 3
2.1 Gender bias in start-up financing ..................................................................................... 3
2.2 Another round of crowdfunding? Which platform? ........................................................ 5
2.3 Will Sizeable achieve accounting break-even in 2018? .................................................. 8
2.4 Calculation of Sizeable shares’ value .............................................................................. 9
3. Conclusion ........................................................................................................................... 12
Exhibit ...................................................................................................................................... 13
References ................................................................................................................................ 18
2
, 1. Introduction
Sizable is a Belgian company that was founded in January 2015. The company specializes in
men’s undergarments that are made from eco-friendly materials such as bamboo, eucalyptus,
and organic cotton. In October of 2017, Marie Martens became CEO of Sizable and was con-
fident in the company’s ability to grow. To realize this vision, Sizable needed 100,000 euros
of additional financing. Previously throughout the company’s history, Sizable had attained its
funding through private investors and three crowdfunding campaigns. To obtain the new goal
of 100,000, Martens wanted to start a fourth campaign of crowdfunding. However, she worries
about the risks a fourth crowdfunding campaign will have. There are several other concerns
that Martens has, which will be addressed in this paper.
First, it has been examined how the campaign’s outcome and valuation of the shares might
change since the CEO is now a female. Second, whether Sizable should even consider a fourth
crowdfunding campaign and if they should do it on one of the platforms used last time had
been researched. Following, when Sizable will break-even has been calculated. Fourth and fi-
nally, a valuation of the company’s shares using the DCF method has been performed.
2. Sizeable and the crowdfunding campaign
In the following important constraints in raising new funds for Sizable will be reviewed.
2.1 Gender bias in start-up financing
Discrimination based on race, gender, and age is unfortunately still prevalent when raising
capital. Pope and Sydnor (2011) argue that racial characteristics significantly determine
whether people can lend money. However, his discrimination is not based on taste since statis-
tics show that race influences return on investment. Johnson and Letwin (2015) argue that fe-
males who start their own business or prepare an IPO also face discriminatory practices, in the
sense that it is more difficult for them to acquire growth capital. The question now arises
whether a taste feeling causes discrimination against females or whether it is statistically
backed.
3
Sizeable: Crowdfunding campaign!
... again
Maastricht University
School of Business and Economics
Maastricht, 15.11.2021
Entrepreneurial Finance, EBC4181,
Damiani, Matteo
Case I: Sizeable: Crowdfunding cam-
paign!... again
Academic Year 2021/22
,Table of contents
1. Introduction ............................................................................................................................ 3
2. Sizeable and the crowdfunding campaign ............................................................................. 3
2.1 Gender bias in start-up financing ..................................................................................... 3
2.2 Another round of crowdfunding? Which platform? ........................................................ 5
2.3 Will Sizeable achieve accounting break-even in 2018? .................................................. 8
2.4 Calculation of Sizeable shares’ value .............................................................................. 9
3. Conclusion ........................................................................................................................... 12
Exhibit ...................................................................................................................................... 13
References ................................................................................................................................ 18
2
, 1. Introduction
Sizable is a Belgian company that was founded in January 2015. The company specializes in
men’s undergarments that are made from eco-friendly materials such as bamboo, eucalyptus,
and organic cotton. In October of 2017, Marie Martens became CEO of Sizable and was con-
fident in the company’s ability to grow. To realize this vision, Sizable needed 100,000 euros
of additional financing. Previously throughout the company’s history, Sizable had attained its
funding through private investors and three crowdfunding campaigns. To obtain the new goal
of 100,000, Martens wanted to start a fourth campaign of crowdfunding. However, she worries
about the risks a fourth crowdfunding campaign will have. There are several other concerns
that Martens has, which will be addressed in this paper.
First, it has been examined how the campaign’s outcome and valuation of the shares might
change since the CEO is now a female. Second, whether Sizable should even consider a fourth
crowdfunding campaign and if they should do it on one of the platforms used last time had
been researched. Following, when Sizable will break-even has been calculated. Fourth and fi-
nally, a valuation of the company’s shares using the DCF method has been performed.
2. Sizeable and the crowdfunding campaign
In the following important constraints in raising new funds for Sizable will be reviewed.
2.1 Gender bias in start-up financing
Discrimination based on race, gender, and age is unfortunately still prevalent when raising
capital. Pope and Sydnor (2011) argue that racial characteristics significantly determine
whether people can lend money. However, his discrimination is not based on taste since statis-
tics show that race influences return on investment. Johnson and Letwin (2015) argue that fe-
males who start their own business or prepare an IPO also face discriminatory practices, in the
sense that it is more difficult for them to acquire growth capital. The question now arises
whether a taste feeling causes discrimination against females or whether it is statistically
backed.
3
