How Xi’an Students Crowdfunded Their Own Coffee Shop

In Xi’an, a group of broke university students couldn’t afford a single cup of coffee priced over 30 yuan—but they had a shared dream: opening their own café. So they sat around a borrowed table with just one shared cup among them, hatching a plan. What followed wasn’t a fairy tale, but a real-world case study in grassroots entrepreneurship using a method some liken to ordering a hotpot by committee.

Ninety-two students, mostly from universities like Xi’an Jiaotong University and Xi’an University of Architecture and Technology, raised over 200,000 yuan through a WeChat-based crowdfunding campaign. They built i near the Provincial Stadium mostly with salvaged materials, volunteer labour, and late-night cleaning marathons.

What Is Crowdfunding, Really?

Crowdfunding isn’t just pooling money—it’s assembling a network of believers. Unlike illegal fundraising, which promises fixed returns, equity crowdfunding invites people to invest in a shared venture without guaranteed payouts. The key legal difference? No interest is promised, and funds go toward a tangible project, not financial speculation. As law professor Zhang Mingkai explains, only when public deposits fund monetary operations—like loans—does it disrupt financial order. In crowdfunding, the capital backs a physical business.

The i Story: Built by Students, for Students

In late 2013, a group of cash-strapped students huddled around a single cup of coffee in someone else’s shop and imagined their own. Without funds for even a basic drink, they pooled ideas and energy instead. They launched a WeChat campaign offering “1,000 yuan gets you a stake in your own coffee shop.” Within a week, 40 mostly student shareholders—nearly all born after 1990—contributed over 200,000 yuan.

The i opened near the Provincial Stadium. Its walls display the logos of contributing schools. Most furnishings came from thrift stores or DIY efforts: tables and chairs were sourced second-hand, murals printed from online images, and bookshelves ordered online. “We built almost everything ourselves,” said shareholder and student leader Li Xiaochao. “Except the floor and ceiling.” During the final push to open by New Year’s Day 2014, seven volunteers cleaned and polished through the night until 6 a.m.

Why Coffee Shops? And Why Do So Many Fail?

Crowdfunding in Xi’an has boomed for over a year, with coffee shops being the most common venture. But industry insiders say most struggle to turn a profit. One early crowdfunding coffee shop shut down completely, later reopening under new, non-crowdfunded ownership. Another project raised 700,000 yuan but remained idle for over a year after research showed how hard it is to make cafés financially viable. Investigator Yu Guang visited dozens of cafés and found nearly 90% operate at a loss, with only a handful breaking even.

“We never expected to profit from coffee sales alone,” said i’s Shi Liaoliao. “The goal was to build a community and launch other projects. The real value is in shared resources and collaboration.” But the risks are real. Experts warn that flat management structures often lead to conflicts. “When 100 people imagine 100 different coffee shops, compromise is hard,” said Beijing-based crowdfunding platform founder Yang Yin. Legal risks also abound: exceeding 200 shareholders or opaque equity structures can create financial ‘black holes.’

What Determines Success—or Failure?

Success stories exist. Wang Longfei’s photography studio, , raised 1.4 million yuan from 96 shareholders with no prior experience. By limiting operational control to a core team of three and leveraging shareholders’ diverse networks, the studio hit 400,000 yuan in revenue its first month. “Our shareholders brought in clients from construction, jewellery, and logistics,” Wang said. “They participated in marketing—and earned commissions.”

But most ventures lack such focus. “Crowdfunding solves the money problem but creates others,” said industry expert He. “Management chaos, conflicting visions, and weak leadership often sink good ideas.” Professionals advise choosing viable industries (like photography or beauty salons), vetting founders’ expertise, and ensuring transparent financials. “In the end, crowdfunding is just a tool,” said Yang Yin. “Investors should ask: is the team professional? Is the plan realistic?”

Frequently Asked Questions

How many students crowdfunded the i?

Ninety-two university students contributed, mostly from schools like Xi’an Jiaotong University and Xi’an University of Architecture and Technology. They raised over 200,000 yuan via WeChat, with most giving between 1,000 and 2,000 yuan.

Did the coffee shop make a profit?

The article does not state that i turned a profit. In fact, industry sources said most crowdfunded coffee shops in Xi’an struggle financially, with nearly 90% operating at a loss.

What was the biggest risk in these crowdfunding projects?

The biggest risks were financial mismanagement, lack of professional leadership, and internal conflicts among shareholders. Legal issues—such as having too many shareholders or unclear equity structures—also posed serious threats.

How did the students furnish their coffee shop?

The students built most of the furniture themselves or sourced it second-hand. They used tables and chairs from flea markets, printed murals from online images, and bought bookshelves online. Only the floor and ceiling were installed professionally.

Is crowdfunding coffee shops common in Xi’an?

Yes. Industry insiders report that coffee shops are the most common type of business funded through crowdfunding in Xi’an, though most fail to become profitable.