1. FUNDING
E ARTS
TIVE
RIES
& CONOR ROCHE
CROWDFUNDING
IN CHINA

2. GLOBAL GROWTH
RATES BY MODELS IN
2014
- Debt / Lending +223% to $11.08 billion
- Equity +182% to $1.1 billion
- Hybrid-based +290% to $487 million
- Royalty-based +336% to $273 million
- Donation- and Reward +45% and 84% respectively
Source : Masssolution / crowdsourcing.org

3. MOST ACTIVE
CATEGORIES IN 2014
GLOBALLY
- Business & Entrepreneurship 41.3% / $6.7bn
- Social Causes 18.9% / $3.06bn
- Films & Performing Arts 12.13% / $1.97bn
- Real Estate 6.25% / $1.01bn
- Music and Recording Arts 4.54%/ $736m
Source : Masssolution / crowdsourcing.org

4. GROWTH RATES BY
REGION IN 2014
- North America market leader but Asia
topped Europe to become the second
largest region by funding volume
- North America + 145% to $9.46 billion
- Asia + 320% to $3.4 billion
- Europe + 141% to $3.26 billion
- South America, Oceania and Africa + 167%,
59% and 101%, respectively
Source : Masssolution / crowdsourcing.org

5. CROWDFUNDING IN
CHINA
2025 Chinese crowdfunding
industry $50 billion (est.)
50% of the global industry
Source : World Bank, ‘Crowdfunding’s Potential for
the Developing World’ 2013

6. CROWDFUNDING IN
CHINA
- 2011 first reward based platform launched (Demohour)
-2013 78 platforms active
-2014 116 platforms active
Dec Equity Crowdfunding regulations issued
-2015 over 27 ‘Equity Crowdfunding’ platforms

7. REWARD BASED
CROWDFUNDING
PLATFORMS IN CHINA
demohour.com - hardware pre-sales (pivot from
Kickstarter like model in Aug 2014)
dreamore.com - creative projects/Chinese
Kickstarter
tmeng.cn - new media / video content
modian.com - games
musikid.com - music
hi.taobao.com - RMB81.9 million (about US
$12m) for 410 projects in 2014.

8. EQUITY BASED
CROWDFUNDING
PLATFORMS IN CHINA
angelcrunch.com - connects entrepreneurs and
angel investors
yuanshihui.com - the biggest single investment
(RMB 51 million for Xinhua Mobile TV) so far
across all platforms
yulebao - finance product by Alibaba, supporting
specific video contents (film/TV)
baifa youxi - film investment fund for Baidu and
Central Pictures Corporation

9. HYBRID CROWDFUNDING
PLATFORMS IN CHINA
jd.com - start-ups (July 2014 /March 2015), raised more
than RMB280 million
fundator - Asian focus, in English
zhongchou.com
- ex-Googlers & TenCenters
- tech arts / charities
-crowdfunding, financial leasing, loan guarantee, short
term financing, credit management, financial
consulting, assets management, and creative financial
services
-set up an office in San Francisco in early 2014

10. OVERSEAS
CROWDFUNDING
PLATFORMS OPERATING
IN CHINA
Kickstarter / IndieGoGo - US platform
supports creative projects in China
pozible.com - Australian platform, in
Chinese and English
No equity crowdfunding overseas platforms
operating in China

11. ECONOMIC CONTEXT FOR
CROWDFUNDING IN
CHINA
-Encourage entrepreneurialism
-Move to consumption /
creative economy
-Enable growth in the arts and
culture industries

12. CROWDFUNDING IN
CHINA MYTHS
-Culturally China is not suitable for
crowdfunding
-Business is all about personal
relationships ‘guangxi’
-Weak intellectual property protection in
China dissuade people from posting their
ideas online
-Crowdfunding is susceptible to
fraudulent activity
-Chinese are unwilling to give / invest in
intangible products & the arts

13. EQUITY CROWDFUNDING
REGULATIONS IN CHINA
CSRC / SAC issued equity crowdfunding
regulations December 2014
- non-listed shareholding companies may
not exceed 200 shareholders, applies to
crowdfunding
- 3rd party investment fund as a work
around
- accredited investors only

14. ACCREDITED
INVESTOR CRITERIA
-invest at least RMB 1 million in a
single project or
-possess net assets of RMB 10 million
or
-possess financial assets of RMB 3
million and have an annual income of
at least RMB 500,000 for the past 3
years”

15. ‘EQUITY’
CROWDFUNDING
OBSERVATIONS
-Limited access for the ‘crowd’
-Platforms as a front for PE funds
(meng3.com)
-Not automated

16. WHERE THERE ARE
NO OPPORTUNITIES
FOR CROWDFUNDING
IN CHINA
-establishing another national platform

17. WHERE THERE ARE
OPPORTUNITIES FOR
CROWDFUNDING IN
CHINA
-Raising financing for film / video for the
Chinese market
-Chinese government keen to encourage
overseas investment
-Shanghai Free Trade Zone, provides an
opportunity for innovation in financing,
nationally and internationally
-Comparatively low broadband penetration
rate in some provinces

18. WHY EQUITY
CROWDFUNDING FOR
FILM IN CHINA
-30% growth in the film / cinema
industries, set to become the largest
‘film’ market in the world
-more certainty
-co-productions are not subject to the
quota system
-film is glamorous anywhere

19. WHAT’S NEXT FOR
CROWDFUNDING IN
CHINA
-Consolidation
-The ecosystem evolves
-Direct to investor / funders
-Overseas offer
-The market will get bigger

20. THANK YOU
conor@bop.co.uk