Author: Charles Frank

Sponsor: Definition in Business and Finance, With Examples

Also, the influencer’s word and their content are generally seen as trustworthy by their followers. In the context of exchange-traded funds, the fund manager or other entity who files the needed regulatory materials with the SEC to create the ETF is considered the sponsor. These examples are programmatically compiled from various online sources to illustrate current usage of the word ‘sponsor.’ Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Venture capital firm Andreesen Horowitz is an example of a widely-known sponsor that invests in private companies. The top underwriting sponsors (also referred to as co-managers) on the deal included Morgan Stanley, Goldman Sachs Group Inc. and JP Morgan Chase & Co.

A sponsorship, usually executed on social media, refers to an arrangement between companies and influencers to jointly advertise the brand’s products and services to the latter’s network or followers. The company typically pays the influencer in cash, products, or other incentives for creating and sharing content that features the sponsoring brand. Plan sponsors are companies or employers who create a benefit plan for their employees. The plan sponsor can work with various entities to provide a comprehensive benefits plan.

Phrases Containing sponsor

Growth in Central and South America during 2010 did not materialize to the extent projected—3.8 percent versus a forecast of 5.7 percent—despite the FIFA World Cup and Olympic Games in Brazil in 2014 and 2016, respectively. While sponsorship can deliver increased awareness, brand building and propensity to purchase, it is different from advertising. A sponsor can provide a wide range of services and support within the financial industry. All sponsorship should be based on contractual obligations between the sponsor and the sponsored party. Sponsors and sponsored parties should set out clear terms and conditions with all other partners involved, to define their expectations regarding all aspects of the sponsorship deal. While the sponsoree (property being sponsored) may be nonprofit, unlike philanthropy, sponsorship is done with the expectation of a commercial return.

For companies that are looking to go public, sponsors play an important role in guiding them through this process. Lead IPO sponsors are often investment banks which make a stake in the company and build confidence for new investors. Morgan Stanley, Barclays Plc, Goldman Sachs Group Inc., and JP Morgan Chase & Co, are examples of lead IPO sponsors. Sponsors are also required for mutual fund and exchange-traded fund offerings in order to make them available to the public for investment.

sponsor Business English

Leading IPO sponsors are typically investment banks that take a stake in the company as well. Investors often look for wide sponsorship of a stock before investing, believing that the endorsement of institutional investors adds a measure of safety to their investment decisions. It gives a good opportunity for the brand to leverage the influencer’s popularity and reputation to raise brand awareness, spark conversations, and connect with a specific audience.

1. Typically, the sponsor provides compensation or benefits to the influencer in exchange for the content created and endorsements made to the influencer’s audience.
2. The individual or group that provides the support, similar to a benefactor, is known as the sponsor.
3. Lead IPO sponsors are often investment banks which make a stake in the company and build confidence for new investors.
4. Examples of a plan that can be sponsored include a pension or 401(k) retirement plan.

Sponsors may also lend their name and reputation to influence the adoption of a movement, platform, or brand for benefits. Sponsors invest in private companies, raise funds, underwrite mutual funds or exchange-traded funds, and guide companies through initial public offerings (IPO). Venture capital firms are examples of sponsors that invest in private companies through Series A,B, or C funding rounds. Investment banks are examples of sponsors that make a significant stake in a company during the IPO process where they help take the company public. Social media sponsorship refers to a partnership involving a sponsor collaborating with a social media influencer or content creator.

Sponsoring Pooled Investments

Influencers, in turn, are compensated and gain free access to products and services. Sponsorship is a partnership between businesses or brands and well-known content creators or influencers with large social media followings involving the promotion of the brand, a product, or a service. One of the most pervasive findings in sponsorship is that the best effects are achieved where there is a logical match between the sponsor and sponsoree, such as a sports brand sponsoring a sports event.

Plan sponsor benefits can include a wide range of offerings for employees including retirement savings plans, pension plans, financial wellness plans, and more. Examples of a plan that can be sponsored include a pension or 401(k) retirement plan. A sponsor can refer to a range of individuals or entities that support the goals and objectives of some other individual or organization. Sponsors, for instance, invest in private companies, create demand for publicly traded securities, underwrite mutual fund shares for public offerings, issue exchange-traded funds (ETFs), or offer platforms for benefits, and so on.

The latter promotes the brand, product, or service on social media platforms to their following and the brand’s target audience. Thanks to their deep pockets, financial resources, and knowledge of different industries, sponsors play a vital role in business and finance. Investment from these corporate entities, which may range from venture capital firms to investment banks can help companies grow and go public. When a company chooses to go public it also engages the support of a sponsor or sponsors. Sponsors help guide the company through the initial public offering (IPO) process and also provide credibility for new investors considering the IPO investment.

Sponsoring something (or someone) is the act of supporting an event, activity, person, or organization financially or through the provision of products or services. The individual or group that provides the support, similar to a benefactor, is known as the sponsor. As the plan sponsor, employers take responsibility for the benefit plans offered.

sponsor noun

Work by Cornwell and colleagues[3] however, has shown that brands that don’t have a logical match can still benefit, at least in terms of memory effects, if the sponsor articulates some rationale for the sponsorship to the audience. A range of psychological and communications theories have been used to explain how commercial sponsorship works to impact consumer audiences. Most use the notion that a brand (sponsor) and event (sponsoree) become linked in memory through the sponsorship and as a result, thinking of the brand can trigger event-linked associations. Cornwell, Weeks and Roy (2005)[2] have published an extensive review of the theories so far used to explain commercial sponsorship effects.

The plan sponsor does the research, selects the appropriate service providers, deals with legal and administrative elements, and is sometimes a legal fiduciary. Those benefit programs are then offered to employees, who can join as participants. Typically, the sponsor provides compensation or benefits to the influencer in exchange for the content created and endorsements made to the influencer’s audience. As it has in most years over the past two-plus decades, sponsorship’s growth rate will be ahead of the pace experienced by advertising and sales promotion, according to IEG.

Every Letter Is Silent, Sometimes: A-Z List of Examples

An underwriter must sponsor a mutual fund issue and complete the proper regulatory registrations for investors to have access to it. The sponsor of an ETF is essentially the managerial body of the ETF that brings together the needed parties and regulatory framework to establish the ETF. For example, startup companies are commonly sponsored through investors known as angel investors. Startups will then try to build a diverse group of investors who can help advise the company and help it grow in a way that includes individuals, venture capital (VC) firms, private equity (PE) firms, and corporations. Sponsorship is undoubtedly one of the best ways for a business to promote its products to a broader audience. With the increasing number of influencers and the extensive social media audiences they have access to, any brand can successfully enhance its online visibility and promote its products.