Document Type



Crowd-funding is an emerging industry in China. However, Chinese crowd-funding market has some different characteristics to its US-based or Europe-based predecessors. Some of Chinese founders regard reward-based crowd-funding as a funding approach, while others highlight its marketing functions. Thus, which play more important role at present? This paper investigates the reason for the special performance of reward-based crowd-funding in China from multiple perspectives. The results indicate that the special institutional environments of China---lack of perfect social credit systems and legal systems, not granting legal definition and status for crowd-funding, leads to an inevitable result that Chinese founders make heavy use of the marketing functions of crowd-funding but make light use of the funding function at the present stage. With the perfecting of the institutional and legal environment, many small-and-medium-enterprises and individual entrepreneurs are expected to pay more attention on the funding function of crowd-funding than today.