An Analysis of the Company Logo, in Finance

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School of Business | Master's thesis

Date

2019

Major/Subject

Mcode

Degree programme

Finance

Language

en

Pages

50

Series

Abstract

Online marketplaces are gaining momentum with the development and voluminous adoption of information technology. Equity crowdfunding, introduced in 2011, has opened up the illiquid market for start-up, early and growth phase companies, for anyone to invest in. This opens up a question of interest: what can we learn from equity crowdfunding? In this thesis, equity crowdfunding is utilized to study the company logo. The company logo is defined as a visual entity, used to enable the identification of a business, its products and services. The company logo is evaluated as a business’ most important vehicle of communication, and classified as a valuable non-physical business asset. Yet, it is scarcely studied, empirically. This thesis empirically examines recent trends and patterns in what equity investors are looking for in the company logo. The study is conducted in equity crowdfunding, with a sample of 461 successful equity financing rounds from May 2013 to March 2019, on the leading equity crowdfunding platform in Europe. The thesis explores 169 797 equity investments made into start-up, early and growth phase companies. Company logos are mirrored to a) relative financing round success and b) number of investors participating in the financing rounds. The findings indicate investors prefer “simple” company logos over “complex” company logos. Additionally, financing rounds where the company logo text is more readable tend to be more successful.

Description

Thesis advisor

Nyberg, Peter

Keywords

finance, equity crowdfunding, company logo, equity investments

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