China’s Crowdfunding Market: Preparing for Takeoff
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.