8 . The Role of Crowdfunding in Business Growth
Crowdfunding is a fundraising method that makes use of the power of the Internet and social networks. It involves raising small amounts of money from a large number of individuals or investors, typically through online platforms. These platforms connect entrepreneurs (创业者) with potential backers who contribute funds to support a specific project, business, or idea.
Types of Crowdfunding
Reward-Based Crowdfunding—Backers get a reward, such as a product sample or easy access, in exchange for their contribution. This model is popular for startups and creative projects.
Equity (股权) Crowdfunding—Investors receive shares or equity in the business in exchange for their funding. This model is ideal for small businesses looking to raise substantial capital and is subject to specific regulations.
Debt Crowdfunding—Entrepreneurs borrow money from backers and agree to repay it with interest over time. This model is similar to a loan and is suitable for businesses with a clear repayment plan.
Tips for a Successful Crowdfunding Campaign
Set clear goals: Define your funding goal, the purpose of the funds, and how you’ll use the money.
Persuasive story: Make an appealing and genuine story about your business. Explain why it matters and how backers’ contributions will make a difference.
Engage your network: Mobilize your existing network of friends, family, and professional contacts to support your campaign. Their initial contributions can build momentum (动力).
Transparency: Be transparent and honest about your project’s progress and any challenges you encounter. Backers appreciate honesty.
Fulfill promises: Once your campaign is successful, fulfill your promises to backers timely and communicate regularly.
1. According to the passage, which of the following is accurate about crowdfunding?
| A．Reward-Based Crowdfunding is the most popular type of crowdfunding. |
| B．Backers can get the same kinds of rewards in the three types of crowdfunding. |
| C．Crowdfunding is a fundraising technique that relies on offline platforms. |
| D．Debt Crowdfunding is fit for businesses with a specific repayment schedule. |
2. The 4
th tip “
Transparency” probably means “________”.
| A．carefulness | B．perseverance | C．frankness | D．optimism |
3. The owners of Exploding Kittens, a card game corporation established six years ago, plan to raise a large sum of capital to start a promotion campaign. They are highly recommended to ________.
| A．prefer Reward-Based Crowdfunding to Equity Crowdfunding |
| B．draft an attractive story about the campaign based on real information |
| C．realize their promises to backers on time even if the campaign is a failure |
| D．compare the initial support provided by different existing contacts |
