China’s Crowdfunding Market: Preparing for Takeoff

by Hua Zhang, November 30, 2015
Industry Trends
Asia-Pacific

Abstract

In 2014, China’s crowdfunding market raised US$150 million and posted an annual growth rate of 123%. Celent estimates that the market will reach US$50 billion by 2025.

Currently, there is an unmet funding gap of US$3 trillion among China’s small and micro enterprises. Most crowdfunding products are oriented toward consumption, especially of smart hardware. The next most common focus area is popular culture such as movies and music. In terms of revenue model, many Chinese crowdfunding platforms, such as Demohour and Dreamore, waive commissions to attract good projects. Their main revenue sources are advertising, investment, and value-added service. Jingdong Crowdfunding, Zhongchou.com, Taobao Crowdfunding, Demohour, and Dreamore were the five largest crowdfunding companies; together they accounted for 60.8% of the market. In the report China’s Crowdfunding Market, Celent examines the market size, business model, competitive landscape, and regulations.

“Since revenue from value-added services is the main source of income from crowdfunding platforms, a deeper level of service would be a major trend. These services could include: investment services, marketing services, and other business services,” says Hua Zhang, an analyst with Celent’s Asian Financial Services group.

This report describes the market, looks at vendors, and examines industry trends.

This 25-page report contains 10 figures and 12 tables. This report is also available in Chinese.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
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Asia (Tokyo)
Yumi Nagaoka
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Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Market Size

2

Business Models

4

 

Crowdfunding Products

4

 

Fee Model

5

Crowdfunding Platforms

6

Integrated Crowdfunding Platforms

7

 

Jingdong Crowdfunding

7

 

Jingdong’s Consumer Board Equity Private Placement

8

 

Zhongchou.com

9

 

Taobao Crowdfunding

10

 

Dreamore

10

Specialized Crowdfunding Platforms

12

 

Demohour Moving Toward Smart Hardware

12

 

Muskid’s Focus on Music

13

 

Tmeng’s Focus on Film and Television

14

 

Kuhope’s Focus on Student Creativity

15

 

Pinganfang

15

 

Agricultural Crowdfunding

16

Regulations

17

Trends

18

Leveraging Celent’s Expertise

20

 

Support for Financial Institutions

20

 

Support for Vendors

20

Related Celent Research

21

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