T o Scale Chinas Crowdfunding: a lab approach oach Xiaochen Zhang - PowerPoint PPT Presentation

T o Scale China’s Crowdfunding: a lab approach oach Xiaochen Zhang Founding Partner, New Development Ventures; Board of Director, American Crowdfunding Professional Association September 21-22, 2016; Kuala Lumpur, Malaysia

Exciting numbers, huge challenges Market volumes by model in China, 2013-2015 ($USD) Challenges: Market challenge: • Regional balance: Beijing, Guangdong • and Shanghai (67%)vs the rest of the Internet use : 649 million internet market users, including 557 mobile internet users (by end of 2014). P2P:56.7%Problematic Platforms, top • Internet finance . e.g. Yu’E Bao Fund 100 ocuppies 68% of the market (Alibaba). 225 million users end transaction August 2015 (up from 78.5 million end 2014). Crowdfunding: 56.9% reward based • + the social web : Wechat 440 million. platforms and 25.3% equity based monthly active users Jan 2015. platforms problematic platforms Regulatory challenges • 2007- 2015: the winter is coming? • Asia-Pacific Alternative Finance Benchmarking Report, 2015 •

T oo much or too little? P2P regulations (August ,2016) Negative list: NOT take public deposits, • create asset pools, provide any forms of guarantee for lenders, sell wealth management products, issue asset-backed securities and Must use third-party banks as custodians for • investors’ funds. An individual can borrow as much as 1 million • yuan ($150,000) from P2P sites, including a maximum of 200,000 yuan from any one site An legal entity can borrow as much as 5 • million yuan ($750,000) from P2P sites, including a maximum of 1 million yuan from any one site Asia-Pacific Alternative Finance Benchmarking Report, 2015

Future opportunities Vertical Cross-border Technology Cross-border transaction: Market access fund and incubation New business models for Efficiency, invester education, traditional sector through cost effectiveness, transparency crowdfudning: International Crowdfunding Leadership Council Beijing Summit: US, Europe, Africa, SEA Blockchain, crowdfunding Vertical crowdfunding lab project screening tool, big data, Crowdfunding Media Platform VR/AR UK-China Crowdfunding Advsiory Group

The End or a New Begining? Thank you Email: zxc@newdevelopmentventures.com Wechat.DCBLUEDELIGHT