Crowdfunding, Grants & Loan, Challenges & Considerations

Crowdfunding is best described as:

• A government grant for startups.
• A type of investment in real estate.
• A method of traditional fundraising events.
• Funding a project by raising small amounts of money from a large number of people.

. Which of the following is NOT a primary benefit of crowdfunding for businesses?

• A. Unlimited funding potential.
• B. Guaranteed success.
• D. Complete control over project direction.
• C. Instant customer acquisition.

Donation-based crowdfunding is most commonly used by:

• Charitable organizations and social initiatives.

• Nonprofits seeking government grants.

• Corporations funding their own marketing campaigns.

• Individuals raising funds for personal projects.

A grant is best described as:

• A sum of money provided for a specific purpose that does not require repayment.

• A loan that must be repaid over time.
• A donation that can be used for any purpose.
• A payment made for services rendered.

A solid business plan for a loan application should include:

• Financial projections and a clear strategy for success.
• A summary of competitors without any analysis.
• A detailed marketing plan with no financial data.
• A vague outline of future goals without timelines.

Which of the following is NOT a characteristic of a grant?

• Requires repayment

• Only available to individuals

• Always requires matching funds

• Unlimited use

Alternative financing refers to:

• Funding solutions outside of the traditional banking system.

• Real estate investment trusts (REITs).

• Peer-to-peer lending platforms.

• Crowdfunding campaigns.

Many alternative investments require investors to be:

• Individuals with no financial background.

• Only institutional investors.

• Non-investors.

• Accredited.

Keeping backers informed and honest about the campaign's progress.

• Only updating backers when the campaign is successful.
• Ignoring backer feedback during the campaign.
• Transparency in communication with backers.
• Providing misleading information to backers.

Government agency focused on scientific and technological innovation.

• DOST

• Environmental Protection Agency (EPA)
• Department of Energy (DOE)
• National Aeronautics and Space Administration (NASA)