FundingDream Aims to Reinvigorate Crowdfunding in China

FundingDreamCan a crowdfunding site succeed in China? If a new company can get the attention of a small percent of China’s more than 1.4 billion people, the impact could be huge, and the revenue even bigger.
Still in private beta and launching in early December, FundingDream is an all-or-nothing setup resembling the Kickstarter model. Campaigns are funded and contributors charged only if they meet monetary goals.FundingDream will focus on socially conscious projects, businesses and charities, applying a 10% fee to collected funds (Kickstarter takes 5% of total raised funds when goals are met). Project creation or backing is open to anyone, as opposed to Kickstarter which just allows creators from the U.S., UK, and Canada (New Zealand and Australia are on the way).

This isn’t the first crowdfunding operation in China. Competitors include DreamMore and Demo Hour. The difference, FundingDream cofounder and CTO Joshua Jackson says, is his site’s streamlined design (pages are in Chinese and English), socially conscious focus, and the audience. FundingDream, which is registered in the U.S., is open to donations and project creation from anywhere. Other Chinese crowdfunding sites aren’t.

Jackson says his site will be a good fit for a more ambitious generation of Chinese entrepreneurs that wants to make a more global impact.

“1.4 billion people is an open and untapped market,” Jackson says. “We’re aiming to dominate because of our partnerships.”

Those partnerships include Jiekuwang, a Chinese online shopping startup site with half a million active users. FundingDream will have access to the email addresses of those users, and plans to promote the site to them, as well as build them profiles to populate FundingDream.

“That’s how we’re jumpstarting the audience,” Jackson says.

The Great Wall

Andy Shuai Liu, a blogger born in China says trust, or lack thereof, is a potential barrier to FundingDream’s success.

“In a relatively low trust society where people are concerned about scams … online, I assume many well-intended prospective benefactors would be seeking assurance that the cause and the project are legit before deciding to donate,” he says.

Qiaoyi Zhuang, a Chinese-born journalist in New York, agrees. She says despite cultural challenges, crowdfunding is extremely popular among young Chinese students and NGOs. But Zhuang thinks it will be difficult for FundingDream to have more success than Kickstarter, which has launched more than 100,000 projects and raised $619 million since 2009. She says Chinese crowdfunding donations are typically much lower than the Kickstarter average of $25 per project, attributing that to a fear of online scams. And since the site will also host projects from outside the People’s Republic, it may have a hard time getting traction with the Chinese.

“I haven’t seen any Chinese crowdfunding sites want to target foreign users,” Zhuang says.

Liu agrees, pointing out another potential roadblock: the very idea of donating. He says that in China people who give away money through charity are often the focus of ridicule — he says with the nation’s income inequality, giving away money is looked at as a frivolous act.

Jackson, however, believes attitudes are changing. He says “people donating has become more common and less controversial.”

Demo Hour, however, only raised less than $500,000 for 150 projects in its first year, a far cry from U.S. crowdfunding companies. And government interference is a real possibility, both Liu and Zhuang point out, especially when it comes to the web.

FundingDream has serious obstacles to overcome to gain a toehold in the crowdfunding business. But with more than 560 million Chinese people online, savvy marketing and local success stories could help buoy those chances.

Image: FLICKR / Philip Jägenstedt

 

Source: Mashable – Adam Popescu

Link: http://mashable.com/2013/08/31/fundingdream/

HEADLINE NEWS

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news [...]

ForbesThe Celebrity Who Loves Crowdfunding: Lala Anthony Hosts New Series Featuring Female EntrepreneursForbesIt's been proven that funders clicking through projects on crowdfunding sites seem to prefer early-stage, female-led ventures, and one celebrity is looking to highlight t [...]

Crowdfunding flower power in WalesPositive.NewsResidents in north Wales decided to act to help a local patch of land flourish. They hope their successful crowdfunding campaign will help them continue restoring this “beautiful meadow”. Locals launched the Gweld y ddôl – Seeing the mead [...]

Crain's Cleveland BusinessCrowdfunding can ease teachers' 'burden'Crain's Cleveland BusinessBooster seats. Reading materials. A bass clarinet. What do these things have in common? At the start of October, teachers in Ohio were trying to raise money to buy all [...]

PolygonStar Citizen's celebrity-clad Squadron 42 trailer boosts crowdfunding by over $1mKitGuruCloud Imperium Games pushed its Alpha 3.3 into Star Citizen's public test servers last week, alongside debuting the most complete trailer for its celebrity-filled Squadron 42 singl [...]

UK FundraisingJustGiving removes platform fees for crowdfunding, major incident & disaster campaignsUK FundraisingJustGiving has today (15 October) announced key changes to its fee structure that will see platform fees no longer charged for its Crowdfunding product, or for major i [...]

BusinessCloudRide-hailing app backed by West Brom FC star is crowdfundingBusinessCloudA ride-hailing app which boasts 1,500 drivers and is backed by West Brom striker has launched a crowdfunding round as it gears up to scale. Arrive was set up to solve a number of problems which it sa [...]

Crowdfunding Global Market Trends, Growth, Opportunities, Top Key Players and Forecast to 2025Digital JournalThis report studies the Crowdfunding market status and outlook of Global and major regions, from angles of players, countries, product types and end industries; this report ana [...]

AdAge.comLego, Coke and other big brands are turning to crowdfunding for R&DAdAge.comEnter Indiegogo, a crowdfunding service that is luring more business from large corporations, which are using the platform to test ideas. New interest from the likes of Coca-Cola and Tyson provide [...]

Money MagazineCrowdfunding Campaign to Unseat Susan Collins in 2020 Surges Past $3 MillionMoney MagazineA crowdfunding campaign has raised more than $3 million to unseat Sen. Susan Collins in 2020 after she voted on Saturday to confirm Brett Kavanaugh to the Supreme Court. Although th [...]

CFB Finance

Marketwired

  • Crowdfunding
  • Crowdfund
  • Peer to Peer Lending
  • FinTech
  • Reg A+
  • Reg CF
  • Crowdfunding USA

Press Release

Live Crowdfunding .tv

What's Next Step in Regulation A+ JOBS ACTS Title IIII :L Interview : Steve Cinelli with Brian Korn Securities and Crowdfunding/Peer-to-Peer Lending Lawyer, Watch more video library | Conference | Interview | Campaign Showcase | Research | Education |