Chinese flock to CowdFunding sites with home-grown flavour

By Celine Sunin Beijing , 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, 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.

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

Henry Chen’s Dreamore charges a 6 per cent commission on contributions. Photo: Simon Song

Demohour focuses on innovative household gadgets and designer goods. Some of the new products promoted on the site have been a Bluetooth sound box made from bamboo, an anti-pollution air control system for cars, and an “intelligent wallet” that operates like a global positioning system, telling the user his or her location.

Although Demohour was inspired by US crowd funding website, Chang said there were huge differences between the US and Chinese markets.

Compared with the US, he said, the mainland has a weaker culture of donations, which is the basis of the crowd funding concept.

To run a crowd funding site in China means we have to find a balance between what we can do and what we cannot,” said Chang.

Despite the lack of detailed rules from the central government for the crowd funding industry, Chang and his colleagues have been cautious.

For example, the website does not accept projects that are starting from scratch; rather, fundraisers must demonstrate their product is at least half-finished before going online for further funds.

The website also guarantees a refund to every contributor in case the project fails to deliver what it promised.

“Crowd funding has just started to boom in China. There’s nothing worse than losing people’s trust or being involved in any financial fraud cases,” Chang said.

Cuptime is one of the most successful projects on Demohour. Invented by a small home-appliance start-up, Shenzhen Mecare Internet Technology, the white cup embedded with intelligent sensors can record a person’s daily water intake and remind him or her to drink water at an appropriate time.

To launch the as a mass market product, product in the mass market, the company needed at least 500,000 yuan for manufacturing.

With a funding goal of 250,000 yuan, it put the project on Demohour last December. Each donor would receive one or more cups, depending on the amount contributed.

The response was overwhelming: Cuptime received a total of 1.35 million yuan from more than 2,600 people within a month.

“Angel investors may also provide us with enough funds. But what we can get from a crowd funding platform is more than money,” said Li Xiaoliang, one of the cup’s inventors.

Chinese contributors are very practical. After giving hundreds or thousands of yuan, they are not expecting to be simply rewarded with a thank you card or a T-shirt

While raising funds on Demohour, the Cuptime team kept an open line of communications with contributors and collected opinions on the product. Based on that feedback, Mecare upgraded the packaging and attached a small filter for users who wanted to drink Chinese tea rather than water.

“Their opinions were so valuable in helping us make a better product before formally launching it into the market,” Li said.

Taking a different approach to Demohour, Beijing-based crowd funding website operates more like an event organiser, raising funds for various art, cultural and public welfare causes as well as boosting awareness of these causes among youth.


Founded in September 2011, Dreamore has raised over 6 million yuan for more than 300 projects. Among the people who were funded were a filmmaker who needed sponsorship to travel to Tibet to shoot a documentary, a media professional who sought financial help to plant organic rice in his hometown, and two young girls who dreamt of selling their spicy cakes to more people.

Dreamore charges a 6 per cent commission on total funds raised by each project.

“Compared to those in the United States, Chinese contributors are very practical,” said Henry Chen Weibang, a co-founder of

“After giving hundreds or thousands of yuan, they are not expecting to be simply rewarded with a thank you card or a T-shirt. They want something that is more in line with what they have paid,” Chen said.

He said most of the projects offer their supporters coupons, souvenirs, books or DVDs.

Chen believes crowd funding platforms have a bright future in China, because the concept is in line with the central government’s goal of encouraging technological innovation in cultural industries.

“I believe this year will be a turning point for the development of crowd funding in China. We have seen the social interest in us growing very fast, and more investors and entrepreneurs intend to tap this market,” he said.


This RSS feed URL is deprecated, please update. New URLs can be found in the footers at [...]

NPRAfter Outcry, Crowdfunding Site Patreon Backs Off Plan To Raise FeesNPRThe popular crowdfunding service Patreon has backed off plans to change its payment structure, after widespread, vocal and passionate opposition from creators and their fans. Last week, the site announced it wou [...]

CoinDeskKickstarter ICO? Don't Count On It Says Crowdfunding Leader ...CoinDeskThe company most widely associated with crowdfunding, Brooklyn-based Kickstarter, has no plans to get into the initial coin offering (ICO) business. Coming in response to the news yesterday that compet [...]

TechCrunchHow hate speech crowdfunding outfit Hatreon crept back online ...TechCrunchIf you want to make a living creating white supremacist content, you're probably not going to do it via sites like Kickstarter and Patreon, which prohibit hate speech. Fortunately there's Ha [...]

Bitcoin News (press release)Crowdfunding Giant Indiegogo Joins the ICO BandwagonBitcoin News (press release)Crowdfunding Giant Indiegogo Joins the ICO Bandwagon Indiegogo is a popular crowdfunding platform headquartered in San Francisco that was founded in 2008 by Eric Schell, Slava R [...]

HuffPostIs Crowdfunding Really a Good Idea for Innovation?HuffPostHere's a head-scratcher for you: according to new research, if you refer to your product or idea as both “novel” and “useful” in your crowdfunding campaign, your funding will be lower than it would if you just decl [...]

Coindesk (press release) (blog)Crowdfunding Giant Indiegogo Opens to ICOs - CoinDeskCoindesk (press release) (blog)The startup revealed today that, through an existing partnership with MicroVentures, it will begin offering services to projects seek to use the blockchain funding model. [...]

FortuneWant to Hold Your Own ICO? Indiegogo Can Help You With ThatFortuneCrowdfunding sites like Kickstarter (kickstarter, +0.00%) and Indiegogo raised start-up cash for a generation of online entrepreneurs, but one increasingly visible method of internet-sourced financing seemed to h [...]

ForbesCrowdfunding Do's And Dont's From iFundWomen's Karen CahnForbesDuring our conversation, she was transparent in sharing that her first software company, VProud, failed because she “did everything backwards” and spent too much time trying to perfect the product. “Pe [...]

TechCrunchFormer Gawker employees are crowdfunding an effort to buy Gawker.comTechCrunchWhile Univision acquired most of Gawker Media's sites last year (and renamed them as the Gizmodo Media Group), the deal didn't include Gawker itself. In fact, BuzzFeed reported last month [...]

CFB Finance


  • 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 |