Skip to main content

Posts

Showing posts from September, 2014

Crowdfunding in China: Three key issues

Given different financial environments, legal systems and cultural practices, Chinese crowdfunding is a totally different phenomenon. For example, in the United States, after passage of the JOBS ACT, crowdfunding has legal validation and subsequent protection. In this environment, a crowdfunding platform is free to move toward perfection. With equity crowdfunding on the horizon, investment and return is soon to be a factor in crowdfunding. But, in China, the crowdfunding environment is still not sound. Compared to the United States, the development of crowdfunding in China is differentiated by three factors. First, innovative projects are harder to find in China than in the United States. Secondly, people in China seem to lack confidence in crowdfunding. Third, the legal basis for crowdfunding is uncertain. The following article discusses each of the issues in detail. 1. Supply Side: Lack of innovative projects “Innovative ideas (in China), especially in the technology category,