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

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

T o Scale Chinas 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


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SLIDE 1

T

  • Scale China’s Crowdfunding: a

lab approach

  • ach

September 21-22, 2016; Kuala Lumpur, Malaysia

Xiaochen Zhang Founding Partner, New Development Ventures; Board of Director, American Crowdfunding Professional Association

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SLIDE 2

Exciting numbers, huge challenges

Asia-Pacific Alternative Finance Benchmarking Report, 2015

Market volumes by model in China, 2013-2015 ($USD)

Challenges:

  • Market challenge:
  • Regional balance: Beijing, Guangdong

and Shanghai (67%)vs the rest of the market

  • P2P:56.7%Problematic Platforms, top

100 ocuppies 68% of the market transaction

  • Crowdfunding: 56.9% reward based

platforms and 25.3% equity based platforms problematic platforms

  • Regulatory challenges
  • 2007- 2015: the winter is coming?
  • Internet use: 649 million internet

users, including 557 mobile internet users (by end of 2014). Internet finance. e.g. Yu’E Bao Fund (Alibaba). 225 million users end August 2015 (up from 78.5 million end 2014). + the social web: Wechat 440 million. monthly active users Jan 2015.

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SLIDE 3

T

  • o 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

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SLIDE 4

Future opportunities

Vertical

New business models for traditional sector through crowdfudning: Vertical crowdfunding lab Crowdfunding Media Platform

Cross-border

Cross-border transaction: Market access fund and incubation International Crowdfunding Leadership Council Beijing Summit: US, Europe, Africa, SEA UK-China Crowdfunding Advsiory Group

Technology

Efficiency, invester education, cost effectiveness, transparency Blockchain, crowdfunding project screening tool, big data, VR/AR

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The End or a New Begining?

Thank you

Email: zxc@newdevelopmentventures.com Wechat.DCBLUEDELIGHT