BookRenter.com is yet another example of a web start-up leaping into a nightmarish logistics problem to make life easier for its customers. The US venture has amassed a multi-million-volume library of new or near-new textbooks, which it rents out to students at college campuses throughout the country. Rental periods range from one to four months, and the savings for students can reach 75 percent of a book’s retail price. Adopting the increasingly popular ‘Netflix model’, BookRenter offers students convenient delivery options and lets them return books by UPS at no charge. Rental terms can be extended as needed, and students can also decide to buy a book if they’d like to keep it.

Of course, BookRenter must compete with established campus retailers, as well as new ventures that are offering free textbooks sponsored by advertisers (see trendwatching.com’s free love briefing for more on that). Even so, BookRenter appeals to consumers who are happy to rent instead of own, choosing flexibility and savings over ownership. As the company grows, it could also easily add downloadable or online texts to its offerings, and could incorporate web 2.0 features to keep students engaged throughout the academic year. Students might be encouraged to upload their notes about particular titles, for instance, and include comments about their classes. We’ve featured new-style rental services for everything from baby clothes to sports cars. Opportunity? Spot the industry or product that other entrepreneurs have overlooked!

Website: www.bookrenter.com
Contact: www.bookrenter.com/contact_us

Spotted by: Francine Kizner

Peer-to-peer lending is no longer a new concept, with marketplaces like Zopa, Prosper and others already out there, vying for consumers' attention. But while most such sites facilitate general-purpose lending, Fynanz appears to be the first to take a niche approach with a service dedicated to funding student loans.

New York-based Fynanz, which is gearing up to launch in select states within the next quarter, offers students an "open loan" process for financing their education. To apply for a loan, students fill out an application and create a personal profile, including the amount and interest rate desired. Tapping into 15 years' worth of student loan data, Fynanz uses that information to give each student a grade and place them in one of six groups reflecting both their credit score and their academic characteristics, among other things. Individual lenders including friends, family and alumni of the institution the student attends are then given priority as they bid alongside lender networks to fund the loan. The more participants bid on the loan, the lower the winning rate is likely to be, Fynanz says. Servicing fees will be "no more than" what other marketplaces charge, company CEO Chirag Chaman says, but there will be no application fees or hidden costs for borrowers. For lenders, meanwhile, the benefits are attractive returns and the knowledge that they are performing a social good.

Fynanz's platform is built using the same characteristics that traditional lenders use, preserving the legality and distinct tax status of the education loan, Chaman explains. There is also likely to be increasing demand for student loans, he predicts: "I came from the student loan world, and there are some big problems there. Those cracks have turned into huge gaps over the last year, and personally, I think the worst is yet to come. People used to dip into home equity, but that's not there anymore."

The P2P lending market, meanwhile, could grow to between USD 5 billion and USD 10 billion in annual volume within 10 years in the US alone, according to data released this week by Online Banking Report. Is there room for niche players? Time will tell. Keep an eye on this one! (Related: Person-to-person loans for home buyers.)

Website: www.fynanz.com
Contact: customer.care@fynanz.com

Spotted by: Ozgur Alaz

It's no secret that many public schools are underfunded and lack supplies, but the enormity of the problem can easily overwhelm those interested in helping. DonorsChoose.org aims to divide and conquer that challenge with a crowdfunding approach that matches potential donors with specific classroom needs.

Created by a group of Bronx, N.Y., teachers in 2000, DonorsChoose.org is designed to engage everyday citizens in an online marketplace where teachers describe and individuals can fund specific student projects. It begins when teachers submit project proposals for materials or experiences their students need in order to learn. Volunteers at the not-for-profit site screen each project proposal and verify that the teacher and project meet set eligibility requirements. Citizen philanthropists can then fund the student projects of their choice—in whole or in part—and are emailed immediate acknowledgements for tax deduction purposes. DonorsChoose.org purchases the student materials and ships them directly to the school along with a disposable camera; the teacher then photographs the students participating in the project and writes an impact letter to the donor, while students write their own thank-you notes. DonorsChoose.org sends all that feedback to donors who completely funded or contributed at least USD 100 toward the project.

DonorsChoose.org is sustained by an optional fulfilment fee of between 15 percent and 25 percent of the cost of each student project, depending on school need. Ninety percent of donors choose to include the fee, the site says, and the rest is made up by grants and contributions. The site's impact, meanwhile, has been to facilitate the contribution of almost USD 19 million to fund more than 43,000 projects for more than 986,000 students, tapping more than 57,000 donors across all 50 states.

We've already covered crowdfunding models for recording artists, software development and athletic teams, but between DonorsChoose.org and community-focused CrowdFunder, among others, it's becoming clear that the collective spending power of the Internet masses may also be the key to filling in the gaps for chronically cash-poor social services. One to bring to other parts of the world? (Related: Peer-to-peer micro lending.)

Website: www.donorschoose.org
Contact: cbest@donorschoose.org

Spotted by: HL Tay

Photos by Gwan W.S.

Springwise’s daily servings of new business ideas wouldn’t be possible without our network of 8,000 Springspotters who send us news of new business ideas whenever they spot them. Little wonder then, that we’re especially attuned to developments in the area of citizen journalism. We first reported on back in June 2003. The South Korean online newspaper has—by recent count—60,000 reporters who receive about USD 20 per published story, plus the glory of having their story appear on a website that’s read by millions.

Now comes word that OhmyNews is opening a school to help citizen journalists better hone their craft. Located in a remodelled elementary school 90 minutes outside Seoul, the facility will teach skills such as camcorder and digital photo use. Additional classes are designed to re-educate mainstream journalists on best practices in citizen journalism, and others are aimed at businesses and NGOs.

The OhmyNews Citizen Journalism School is significant for a number of reasons. First off, it further legitimizes citizen reports. And it does so on its own terms: the practitioners—and not old-school academics—are behind the effort. And the school will undoubtedly create a strong face-to-face community alongside the online newspaper’s massive online community.

Equally important from an entrepreneurial standpoint is the school’s location. Korea is perhaps the most internet-focused nation on the planet, where broadband connections are nearly as common as electrical wires. Bottom line: what happens in Korea isn’t likely to stay in Korea, which means there’s a ripe opportunity to start similar ventures elsewhere. As more and more citizen journalists emerge, readers and viewers will inevitably seek out the most prescient and finest reports. Which means that those who want to stand out as citizen journalists will seek training.

Website: english.ohmynews.com
Contact: internews@ohmynews.com

Spotted by: Bjarke Svendsen

Keeping kids at the head of the class often involves a joint effort by teachers, students and their parents—so it makes sense to get them all on the same page. The HotChalk Learning Environment does exactly that, using the convenience and versatility of an online community to complement the classroom experience for grades K-12.

Teachers can create websites for their classes and can log on to manage lesson plans and grades, post assignments and announcements for students, including attachments and even video clips. They can also collaborate with other teachers and take advantage of continuing education opportunities, available through a partnership with McGraw-Hill. Students can receive and submit homework, view handouts and reference materials, access grades and, of course, pose questions and comments as needed. And parents can keep a watchful eye on their children's progress and stay in touch with teachers. HotChalk is free of charge, so schools and parents can take advantage of all of its features without breaking the bank.

Funded in part by corporate sponsorships, the site does accept money from advertisers, but it does so very selectively, using the HotChalk Community Standards Engine. The company doesn't accept any ads they deem inappropriate. Moreover, ads are never displayed during the school day or to children younger than age 13. One of the fastest growing internet properties in the US, HotChalk may well be a model worth adapting to other regions or professions.

Website: www.hotchalk.com

Spotted by: Bill McMahon