Financing from Masses (eBook)

Dr. Jiazhuo G. Wang is a professor of finance and chair of the Department of Accounting and Finance at the School of Business, College of Staten Island, City University of New York, a visiting professor of HSBC School of Business at Peking University (PKU) and a senior research fellow at SME Research Center at PKU. He is the editor of Springer’s book series on China’s SMEs, and the author (or co-author) and editor (or co-editor) of 7 books published by Springer and Tsinghua University Press. He is also the invited guest speaker of Biz Today, a China Radio International flagship business program, invited keynote speaker at the China Internet Association (Internet Society of China) annual conference forum 2015 and 2016, invited author of an article published in China Internet, the official journal of China Internet Association, and invited column commentator of the G7/G20 Think Tank, which is based at the University of Toronto. Hongwei Xu is the CEO of "Online Lending House", the largest online lending portal firm in China, with tremendous operating experience in China’s Internet finance industry, and has published several articles on Internet finance (in Chinese) in Chinese business journals.

Preface 5
Acknowledgements 13
Contents 14
1 An Overview of Crowdfunding in China 15
1.1 The Definition, Origin and Classification of Crowdfunding 15
1.1.1 The Definition of Crowdfunding 15
1.1.2 The Origin of Crowdfunding 16
1.1.3 The Classification of Crowdfunding 17
1.2 The Nature and Characteristics of Crowdfunding 19
1.3 The Major Events of Crowdfunding Industry in China: 2015 to September 2016 21
2 Statistic Analysis of China’s Crowdfunding Industry 27
2.1 The General Status of Crowdfunding Platforms 27
2.1.1 The Number and Distribution of Platforms 27
2.1.2 The Registered Capital of Platforms 27
2.1.3 The Amount of Funds Successfully Raised by Platforms 29
2.2 Some Analysis of the Development of Crowdfunding Platforms 29
2.2.1 The Types of Crowdfunding Platforms 29
2.2.2 The Successful Crowdfunding Projects 30
2.2.3 The Amount of Funds Raised 31
2.2.4 The Number of Crowdfunding Investors 31
2.3 The Statistics of Regional Development 32
2.3.1 The Number of Platforms by Provinces 32
2.3.2 Fundraising Scale by Provinces 32
2.4 Some Analysis of the Primary Business of Crowdfunding Platforms 33
2.4.1 The Distribution of Primary Business of Platforms 33
2.4.2 Some Analysis of Projects of Comprehensive Platforms 34
2.5 The Analysis of Bankrupt and Transformed Platforms 35
3 The Basic Model Analysis of Crowdfunding in China 37
3.1 The Reward Crowdfunding 37
3.1.1 The Procedures of Reward Crowdfunding 37
3.1.2 The Profit Model of Reward Crowdfunding Platforms 39
3.1.3 The Risks of Reward Crowdfunding 41
3.1.4 Some Case Analysis of Reward Crowdfunding Projects 42
3.2 Equity Crowdfunding or Non-public Equity Financing 44
3.2.1 The Procedures of Equity Crowdfunding 45
3.2.2 The Investor Threshold of Equity Crowdfunding 47
3.2.3 The Business Model of Equity Crowdfunding 47
3.2.4 The Risks of Equity Crowdfunding 53
3.2.5 Some Case Analysis of Equity Crowdfunding 54
3.2.6 The Entry of Five Internet Giants into Equity Crowdfunding 55
3.3 Charity Crowdfunding 60
3.3.1 The Current Status of Charity Crowdfunding in China 60
3.3.2 The Procedures of Charity Crowdfunding 61
4 Market Analysis of Sub-fields of Crowdfunding Industry 64
4.1 The Film, Television and Culture Crowdfunding 64
4.1.1 The Current Status of Film, Television, and Culture Market in China 64
4.1.2 Some Backgrounds and Features of Film and TV Crowdfunding 66
4.1.3 Some Deeper Dive Analysis of the Film and TV Crowdfunding 68
4.1.4 Regional Distribution of Film and TV Crowdfunding Platforms 76
4.1.5 The Success Rate of Film and TV Crowdfunding by Fields 77
4.1.6 Financing of Vertical Film and TV Crowdfunding Platforms 81
4.1.7 The Risks of Film and TV Crowdfunding 82
4.2 Used Car Crowdfunding 84
4.2.1 The Current Status of Automobile Market in China 84
4.2.2 Some Backgrounds and Characteristics of Automobile Crowdfunding 85
4.2.3 The Business Models and Legitimacy of Automobile Crowdfunding 87
4.2.4 Some Statistics of Automobile Crowdfunding 90
4.2.5 The Types and Brands of Automobiles Using Crowdfunding 94
4.2.6 Some Statistics of Automobile Crowdfunding Platforms 96
4.2.7 Financing Status of Automobile Crowdfunding Platforms 97
4.2.8 The Existing Risks of Used Car Crowdfunding 98
4.2.9 Summary 99
4.3 Physical Store Crowdfunding 100
4.3.1 The Background and Rationales 100
4.3.2 The Return Model and Exit Mechanism 101
4.3.3 Some Statistics of Physical Store Crowdfunding 102
4.3.4 The Financing Status of Vertical Physical Store Crowdfunding Platforms 106
4.3.5 The Existing Risks 108
4.3.6 Summary 110
4.4 Agricultural Crowdfunding 110
4.4.1 The Rise of Agricultural Crowdfunding 111
4.4.2 The Agricultural Crowdfunding Models 112
4.4.3 Some Advantages of Agricultural Crowdfunding 115
4.4.4 Summary 115
4.5 Real Estate Crowdfunding 116
5 Some Analysis on Several Leading Crowdfunding Platforms in China 119
5.1 JD Crowdfunding 120
5.1.1 Q1–Q3 2016: A Period of Rapid Growth for JD Crowdfunding 120
5.1.2 How JD Crowdfunding Is Different 121
5.1.3 JD Crowdfunding’s Profit Model 122
5.2 Suning Crowdfunding 122
5.2.1 The Development of Suning Crowdfunding 122
5.2.2 The Resources of zc.suning.com 123
5.2.3 The Uniqueness of Sunning Crowdfunding 123
5.2.4 The Profiting Model of Suning Crowdfunding 124
5.3 Taobao Crowdfunding 125
5.3.1 The Development of Taobao Crowdfunding 125
5.3.2 The Types of Taobao Crowdfunding 125
5.3.3 The Features of Taobao Crowdfunding 127
5.3.4 The Profiting Model of Taobao Crowdfunding 127
5.4 Zhongtoubang 127
5.4.1 The Development of Zhongtoubang 127
5.4.2 The Performance of Zhongtoubang 128
5.4.3 Some Features of Zhongtoubang 128
5.4.4 Profiting Model of Zhongtoubang Crowdfunding 128
5.5 Dreammove Crowdfunding 129
5.5.1 The Developmental Performance of Dreammove Crowdfunding 129
5.5.2 The Characteristics of Dreammove Crowdfunding 130
5.5.3 The Profiting Model of Dreammove Crowdfunding 130
6 The Policies and Regulations of Crowdfunding Industry 131
6.1 The Instructions of Government on Crowdfunding Industry 131
6.2 The Regulations and Policies of Crowdfunding Industry 133
6.3 Local Regulatory Policies of Crowdfunding Industry 133
7 Financing Status of China’s Crowdfunding Platforms 145
8 The Future Development of Crowdfunding Industry in China 150
8.1 Integration and Standardization with Stricter Regulations 150
8.2 Accelerated Entry of Venture Capital 151
8.3 Specialization and Refinement 151
8.4 Becoming Mainstream Via Mobile Phones 152
8.5 More Transparent Information Disclosure 152
8.6 Innovation 152
8.7 Crowdfunding Ecologicalization 153
References 154