Crowdfunding

Crowdfunding and investment

Discuss the following questions
1 Have you ever supported or donated to a crowdfunding campaign? What was it for?

2 Why do you think people use crowdfunding instead of going to a bank for a loan?
3 What would convince you to invest or contribute to an online campaign? The product? The person? The rewards?

4 Why do you think people donate or invest in campaigns, even if they don’t know the creators personally?

5 Would you be more likely to support a cause (like charity) or a product (like a new gadget)? Why?

You are going to watch a clip which explains what different types of crowdfunding are. First, match the words with their definitions.
Then, watch the clip and decide if the statements below are true or false.

Match

Match the following

• to estimate or forecast (something) on the basis of current trends or data

• a charge for borrowing money, generally a percentage of the amount borrowed

• something, especially money that is owed to someone else

• one of equal parts that the ownership of a company is divided into

• cost that you can substract from the earnings on which you have to pay income tax

to project

interest

debt

share

deductible

• to project

• interest

• debt

• share

• deductible

Match

Match the following

• the fact of an idea, product, etc. becoming popular

• the act of saying how much something is worth

• the income that a government or company receives regularly

• the fact that something produces or is likely to produce a profit

• the amount of money moving into and out of a business

traction

valuation

revenue

profitability

cash flow

• traction

• valuation

• revenue

• profitability

• cash flow

Multiple Choice

Crowdfunding is a method for individuals or startups to raise money online.

• True

• False

Multiple Choice

The crowdfunding industry is expected to decrease significantly by 2025.

• True

• False

Multiple Choice

Debt-based crowdfunding allows contributors to receive interest for their contributions.

• True

• False

Multiple Choice

Reward-based platforms promise contributors shares in the project.

• True

• False

Multiple Choice

Donation-based crowdfunding is typically charitable and may offer tax benefits.

• True

• False

Multiple Choice

In the early stage of crowdfunding, the focus is on maximizing profitability.

• True

• False

Discuss the following questions.

 1 What risks do you think people take when they give money to crowdfunding campaigns?
2 Imagine someone close to you is starting a project and needs help raising money. How would you help them?
3 If you saw a campaign for a new product or cause, what would make you want to support it?