The Analysis on Crowd Funding in China

This paper focus on the analysis on Crowd funding in China. Crowd funding is a new financial model aiming to fund a business or a project venture through the Internet. The advantage of crowd funding which includes the fact that it can raise finance very fast without requirement of upfront fees, the investors and donors are capable of tracking the process of the funded project, and it is a good advertising platform offer people get benefits. The disadvantages of listing in crowd funding, such as not all projects are able to successfully obtain funds through crowd funding. Usually, there is great need for high levels of campaign in order to create interest before the project is launched. In China, there are two mainly crowd funding platforms appeared which are reward-based crowd funding and equity crowd funding platforms. Through compare two different types of platform, equity crowd funding is most popular than other. In China, there are no stated national regulations regarding any form of crowd funding so that it cannot develop fast, but it will increase in the near future meet the needs of Chinese economy.