<<Unit 8>>

<Starting Point>

What invention could change the world?
What invention could make a great difference in your daily life?
What invention doesn't exist yet but should?

Now, you suddenly have one of those great ideas that could change the world.

How do you finance this life-changing project?
What funding options do you have to raise money for your future business? Name 5–10 options.
What are the pros and cons of those sources of cash?
What is your favourite source of cash?
Name thre crowdfunding wesites.

<Working with words>

How do you raise money to start your own business?

self-financing
bank loan
familiy members
partnerships
sponsorships
crowdfunding

One possibility would be crowdfunding.

What is crowdfunding? Defintion?
What are the 4 models / types of crowdfunding according to the Youtube video?
What are the pros and cons (benefits and drawbacks) of crowdfunding?
What crowdfunding websites are there?
Name 10 crowdfunding reward ideas?

Crowdfunding

Questions:

Who ar the three people at the beginning of the video?
What two things does an entrepreneur need to get a bank loan?
What are the four models of crowdfounding?
How would you define the word 'crowdfunding'?

Anwers:

Steve Jobs (co-founder of Apple), Bill Gates (founder of Microsoft Corporations), Warren Buffett (CEO of Berkshire Hathaway)
a business plan and a loan application
donation, pre-order, reward based, equity based
the practice of funding a project or venture by raising money from a large number of people who each contribute a relatively small amount, typically via the Internet

Pros and Cons of Crowdfunding.pdf

Adobe Acrobat Dokument 459.6 KB

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What are the benefits and drawbacks of crowdfunding?

Benefits

market validation / testing the group
getting free feedback / advice
creates a research source
increased exposure /
low financial risk
new technology
hip / crowd loves it
time-efficient
retain ownership
gives you a headstart

Drawbacks

investment of time / 24 hours 7 days a week
investment of money / fees
risk of failure
campagne length / several months
mastery of technique / social media
online exposure / visibility
lack of support

A comparison of crowdfunding websites

Crowdfunding Reward Ideas

name tags on object
credits in films/videos
print outs/copies of art work
cookies with logo/sweets
pre-order possibilities
test drive
limited editions/prints
free T-shirts/memory/sticks/bumper stickers
custom designed products
guided factory tours
meet and greet the designer
inside stories/premium content
personal photo
backstage passes
location/name shouts (include hometown in next story)
handwritten postcard
lession via Skype

Glossary of crowdfunding terminology

Crowdfunding: Raising relatively small amounts of money from a large number of people for a project or business over the internet.
Crowdfunding Platform: A website which facilitates crowdfunding by allowing people or companies seeking money to raise it from members of the public. Platforms list different projects, collect and process the payments between those the crowdfunders giving money and the crowdfundees receiving it.
Equity: Ownership of a piece of a company as an investment.
Reward: Something given to investors in exchange for their funds while crowdfunding, either the first run of an actual product, or a shirt, sticker, or small object related to the project or company being funded, or even just a “thank you” acknowledgement.
ROI: In short, return on investment. The payback earned from investing in something. Examples include financial return through stocks or emotional return through feeling good about giving.
Entrepreneur: the owner or manager of a business enterprise who, by risk andinitiative, attempts to make profits

Project: Reviewing a Crowdfunding Project

Open one of the above crowdfunding websites and choose a project. Read about it and make notes. Explain your fellow student what the project is about. Include the following aspects:

title of the project
status: openend, indemand, closed
category: food, travel, education, fitness, ...
description/overview: give some details about the project
price of the item
stage: concept, prototype, production, shipping
raised money for the project: current account balance
goal: reached, not reached
website
reasons for choosing the project: what do you like about it? Why did you choose it?

Word Forms

Verb	Noun	Adjective
to support	supporter	supporting/supportive
to donate	donation	donated
to raise	raise	raised
to found	foundation/founder	founded
to contribute	contribution	contributed
-	entrepreneur	entrepreneurial
-	potential	potential
to reward	reward	rewarded
to innovate	innovation/innovator	innovative

Word Form Exercises

Word Formation Exercise 1
Word Formation Exercise 2
Word Formation Exercise 3
Word Formation Exercise 4
Word Formation Exercise 5
Word Formation Exercise 6
Word Formation Exercise 7

Interesting Projects that I follow

<Language at work>

Talking about the future

Tense	Use	Sample Sentence
Present Simple (Timetable Future)	timetables scheduld or arranged meetings	The train leaves at 6:45 am tomorrow.
Will	rapid, spontanous decisions (we decided just now) predictions (we think or believe it) offer, promise or threat habit/predictable behaviour refusal	I'll call a taxi for you. I think I'll go now. I think it will rain later. I'll do my best. Stop it or I'll kill you! He will give up. I know. She will not listen to you!
going to	prior plan (we decided before) intentions/not sure in all likelihood to happen / logical consequence	I'm going to the beach next weekend. They lost last weekend. In all probability they are going to lose.
Present Continuous	definite arrangments in the near future	I'm flying out to Dallas next week.