Crowdfunding has arrived in China. As reported by Lu Yuan:
“(Beijing) – Investing like an angel now costs no more than an average duck dinner in Beijing.
The force driving China’s growing ranks of small-scale angel investors are crowdfunding websites, which offer individuals access to business financing pools for as little as 100 yuan each.
But these websites are operating in a regulatory gray area in China. And investors are called to give money for flimsy returns: In one case, they were rewarded for their financial backing with scarves in lieu of cash.
Online crowdfunding started in China last year and since then has dramatically lowered thresholds for entry in an investment realm usually dominated by venture capital firms with deep pockets.
Website companies such as Demohour and Dreamore popped up with funding platforms to serve small business owners with big ideas. They’ve built money pools via electronic networks linking small investors, and then doled out cash to businesses. [Continue to full article...]
Article | Tapping into Crowd Power with Website Finance
Publication | Caixin Online
Author | Lu Yuan