Using Crowdfunding in an Innovative Way: A Case Study from a Chinese Crowdfunding Platform

In this study we try to suggest a new model of crowdfunding platform based on the description and analyses of several innovations made by a Chinese platform enterprise engaging in crowdfunding for hostels, cafes and so forth. Firstly, different from traditional crowdfunding models, this emerging platform enterprise combines reward-based crowdfunding with equity-based crowdfunding(or lending-based crowdfunding). Such kinds of crowdfunding models make the transitions that the roles of backers are not merely customers, stockholders, or creditors but a dual role as being customers and stockholders(or creditors) at the same time. Secondly, to further motivate the communication among backers and fundraisers, the Chinese platform enterprise tried to create the community of stockholders and the membership system which make it possible that even backers and fundraisers of different projects could make connections with each other. Thirdly, the platform creating is the first step adopted by the enterprise to create a comprehensive business ecosystem, consisting of operational supporting, institutional investors, entrepreneurship service, intelligent hotel management service, content service, as well as famous OTAs. Such comprehensive ecosystem offers more connectivity and promote the distribution of information. We focus on the model development and try to provide insights for the growth and development of crowdfunding.