Chinese flock to crowd funding sites with home-grown flavour

For some of the early movers on the mainland, investment is just part of the mix in fundraising operations that also emphasise public welfare

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Demohour chief Chang Yu has time on his side in extending the reach of crowd funding on the mainland. His website has helped more than 2,000 projects. Photo: SCMP

Published: 10:15am, 11 Mar 2014Updated: 12:51am, 12 Mar 2014

Crowd funding might be a late bloomer in China, but it is taking on a different flavour from similar, well established services in the United States.

Mainland crowd funding websites such as Demohour and Dreamore play down the investment aspect and emphasise their role in product innovation and public welfare.

"We have never considered ourselves to be an internet financing company. In fact, we are no different from a Groupon or a presale retailer online," said Chang Yu, founder and chief executive of Demohour, the first and at present the largest crowd funding platform on the mainland.

Founded in July 2011, Demohour.com has helped more than 2,000 projects without access to bank loans or wealthy private investors to raise funds from small contributors online. More than 40 per cent of the projects reached their funding goals or pulled in more than their target within three months of listing.

I believe this year will be a turning point for … crowd funding in China

HENRY CHEN, DREAMORE.COM

Chang declined to disclose the total amount Demohour has raised so far but said each contributor gave an average of 300 yuan (HK$380).

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