Crowdfunding opens up business opportunities
( chinadaily.com.cn )
Updated: 2016-04-28
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In the new era of mass innovation an entrepreneurship, crowdfunding has become a popular way of raising funds outside of the traditional financial system. Each donor in a crowdfunded project essentially becomes a stockholder in that business, able to contribute and reap the rewards of creativity and innovation.
Zhangjiagang in Jiangsu province has seen many successful businesses prosper from such means of funding in the city, one in particular being the crowdfunded travel agency, HKCTS Travel.
On Oct 18, 2015, HKCTS Travel Agency opened its doors, having achieved its startup financial goal of 300,000 yuan ($46,000), 40 percent of the company's stock is shared by individual investors through crowdfunding and 20 percent is owned by Daka Cultural Media Company.
"It is the first time that Daka has cooperated with HKCTS to run a travel agency," said Cai Liang, Daka's manager. "All shareholders serve as friends as well as brothers to fight for a better future of the travel agency." One person's ability is limited, while the crowdfunding model combines everyone's abilities, bringing in maximum results, he added.
For investors, crowdfunding helps them get familiar with company's business model, structural system and operations, as well as a series of value-added services. The opportunity to get acquainted with various foresighted stockholders also contributes a lot to innovation in the business.
For business owners, crowdfunding is effective in enhancing brand influence, promoting product recognition and collecting user feedback. Multiple stockholders realize the integration of quality resources contributing to the rapid development of the company.
The increased prominence of crowdfunding has given rise to many other local crowdfunded enterprises, such as Goldener Stern Biergarten, a German-style restaurant which opened on Dec 23 last year with the help of crowdfunding from 158 stockholders.
Zhou Xinliang, one of the restaurant's owners, expected to build a team with integrated resources that keeps looking for investment chances. Every year, stockholders put forward 10 plans through brainstorming to seal the direction for future development. The restaurant aims to become a product demonstration platform, a think tank for start-up teams and an exchange base for business investors.
Crowdfunding has played an increasingly significant role in the field of charity. Zhangjiagang's Jingang town rolled out a charity crowdfunding platform in June, 2015, with more than 17,000 yuan raised for its 10 charity projects in the first week alone, breaking the local crowdfunding speed record for newly-launched projects.