JD.com launches new equity crowdfunding site

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JD, China’s second-biggest ecommerce company, announced today it is launching an equity crowdfunding platform. As opposed to traditional rewards-based crowdfunding, like Kickstarter or Indiegogo, backers of projects on JD Equity Crowdfunding will actually be able to buy a slice of equity in the company they’re supporting.

As of press time, nearly 20,000 investors have signed up.

The new site expands the range of offerings from JD Crowdfunding, which has become the biggest site in China for crowdfunding gadgets since rival platform Demohour pivoted to pre-sales. It falls under the JD Finance umbrella, which includes small loans for its merchants, insurance, and credit lines to its customers.

JD says it wants to give China’s entrepreneurs access to a broad range of early-stage investors as well as training and support for companies throughout the process. That means, in addition to the capital secured through crowdfunding, JD will provide training courses with seasoned investors and entrepreneurs and access to JD’s internet finance tools. And, of course, they’ll be able to sell their products on JD Mall.

“I know from personal experience how important it is for entrepreneurs to have access to knowledge and early funding,” said Richard Liu, founder and CEO of JD. “As the leader in Chinese e-commerce, JD.com is ideally positioned to create a premium platform to give China’s early-stage companies access to resources and seed capital from a broad range of investors.”

As for which startups get chosen, the spokesperson says:

We look for management teams that demonstrate honesty, commitment and ambition, and who offer a business model with strong prospects. Projects submitted on our platform will be vetted by a team of experts based on a number of simple but stringent criteria, including the strength of the management team, business model, growth prospects and existing resources.

 

 

To read the full article, click https://www.techinasia.com/chinas-startups-raise-investment-crowd-jds-equity-crowdfunding-site/

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