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JD.com, a Beijing-based e-commerce company, has just launched an equity crowd-funding site on March 31, to give start-ups greater access to financing channels.
This is the perfect time to get engaged in equity crowd-funding which is set to boom in China thanks to policy and government support.
In commenting on the move, Jin Lin, head of the giant e-commerce company's equity crowd-funding business, said, "This site will connect early-stage companies with investors to meet entrepreneurs' money needs, save investors' time in looking for projects, and get more common people involved."
The JD site model means using an experienced professional investor or venture-capital firm to handle the funding progress, by assessing company strengths and making decisions, with ordinary investors just taking part.
The company has also built a management team to support start-ups and help them succeed, and meanwhile, supervise their use of the funds, said Jin.
Start-ups that successfully raise money through the site will have to provide a financial report annually and make public their major business and strategy decisions to reduce investor's risk and thereby encourage investors to fund companies and projects on the site.
If the business succeeds, investors can benefit from owning a small piece of that business as its share value goes up.
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A service center of JD.com in Haidian district, Beijing. [Photo By Wang Yueling/Asianewsphoto.com] |
