Business Finance
Business Lending Crowdfunding and Entrepreneurs Money Homework

Question Description

I’m studying for my Business class and don’t understand how to answer this. Can you help me study?

Crowdfunding Assignment

PART 1 - Students will investigate some of the current crowdfunding sites and present three opportunities in which they would be willing to invest their money or pre-purchase a product.

Students will have to draw from three different types of crowdfunding sites:

A crowdfunding site which allows people to investing in a company with equity

A crowdfunding site which allows people to lend entrepreneurs money. This can also be described to as peer to business lending. (Note this is not peer to peer where one person lends someone money so they can buy a stereo.)

A site which you can pre-purchase a product.

PART 2 - Students will prepare a five to nine-page report discussing the following:

The product/company they selected to invest in or pre-purchase the product. Students should explain why they selected the company and/or product. Students should explain what made the company interesting to them and why they think this product or company will be successful.

Students should consider the market potential for the product, advantages the product or company has, potential competition and other factors.

Link to the site.

PART 3 - WRAP UP THE REPORT AND TIE IT ALL TOGETHER, (adding information that integrates theory with real-life with your own thoughts and ideas will give you higher points). Students should conclude the report with a one to two-page reflection where they can discuss what they learned in completing the assignment, how entrepreneurs are using crowdfunding, the types of pitches entrepreneurs are using and so forth. Students should also discuss what they found surprising, interesting and relevant.

Tips/Help:

Historically, there have always been students who ask the instructor ‘Where do I get this information?’. To avoid this, I am going to offer the following: Pretend this is a job assignment for which you have been given clear instructions and it is up to you to find the information yourself. If I was a student, I would start with Google, I would discuss it with my peers and/or family, I would read the textbook, and I would make sure to read online articles. That is what I would do. You may choose to find this information another way and I will leave it to you to determine the best method to complete the assignment.

Students should recognize that there are a variety of crowdfunding sites and the differences between them. You will not be able to complete this project only using one crowdfunding site.

Student has agreed that all tutoring, explanations, and answers provided by the tutor will be used to help in the learning process and in accordance with Studypool's honor code & terms of service.

Final Answer

See attached:)

Running head: CROWDFUNDING

1

Crowdfunding
Student’s Name
Institution
Date

CROWDFUNDING

2
Crowdfunding Opportunities

Crowdfunding is a way that enables charities, businesses, and individuals to raise money.
Organizations and people donate to or invest in a crowdfunding project and in return, there is a
potential reward or profit. This has become a popular way of getting funds for startup businesses
and new projects nowadays. This method is increasingly becoming popular and experts estimate
that this industry will continue growing and by the year 2025 it will be over $300 billion
(Hildebrand et al., 2016). For this paper, I investigated a number of the current crowdfunding
sites and the opportunities available. I identified three opportunities from three different
crowdfunding sites in which I would be willing to invest. These sites are StartEngine,
Kickstarter, and WeFunder. This is a report of the company and entrepreneur I would invest in
and the product I would pre-purchase. These are opportunities that I thought would be
successful.
HYLETE, Inc.
HYLETE, Inc. is a brand founded on a fitness lifestyle that deals with women’s and
men’s apparel, cross-training shoes, and backpacks, that is open to investing. This opportunity
was found at a crowdfunding site known as StartEngine and the link
is https://www.startengine.com/hylete-2019. This is among the largest equity crowdfunding sites
in the world and it facilitates investors to purchase equity in companies raising up to 50 million
dollars. This site does not take equity from Reg CF companies like some of its competitors.
HYLETE, Inc. is a company that deals with fitness apparel that believes that its impact
should be felt beyond the products they sell. The company was founded in 2012 and it has been
growing its product lines. HYLETE, Inc. is offering millions of shares of the common stock of
the company at $1.00 per share, and the minimum shares per investor are 500 shares ("HYLETE,

CROWDFUNDING

3

Inc.", 2019). The company is founded on quality and innovation and it works with experts to
promote fitness. I selected this company because it is transparent with its financial statement, and
hence I could easily access them. From the company’s financial statements, it is doing well in
terms of its revenues. So far the company has conducted seven rounds of crowdfunding, all
successful and I believe the current round will be successful too considering the current sports
apparel market. I believe the brand will be successful since the company has strategically
positioned itself over the years making high-end lifestyle and performance footwear, gear, and
apparel for both women and men. The brand has a high following on social media which is
important for its growth. I believe the company will be successful because already it has raised
$1,069,865 from 1,114 investors ("HYLETE, Inc.", 2019).
The company has numerous advantages over other companies starting with the fact that it
has already established product lines in lines which are growing, with cross-training shoes being
the latest product launched. The target market for the company is the sports apparel marke...

Spartacus (12857)
University of Maryland

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