Dongjia, JD.com’s online equity crowdfunding platform, announced on Monday that it has helped 89 innovative startup projects raise angel funding.
According to Dongjia, 92% of its projects have been successfully funded and the total amount of financing on Dongjia exceeds RMB 1.1 billion (USD 170 million). 23 projects are in the process of listing on the new third board, an over-the-counter market for growing enterprises.
“Risk control abilities and a mass innovation ecosystem are the core competitiveness of Dongjia,” said Sun Zhaozhao, the director of Dongjia, at its anniversary celebration on Monday.
He added that projects on the platform are mostly from trendy industries, especially user-oriented projects like service upgrades, intelligent technology, community social projects and projects that improve quality of life. At present, less than 2% of all projects submitted to Dongjia have passed its selection process.
Launched last April, Dongjia is an online equity crowdfunding platform run by JD Finance, the financial affiliate of China’s second largest e-commerce platform JD.com. Each round of funding on the platform is led by a professional investor. Participants’ annual income must surpass RMB 300,000 and each participant must possess over RMB one million in financial assets.
With the startup boom following the announcement of China’s Internet Plus policy, online equity crowdfunding entered an explosive stage of development in China in 2014. Statistics from the research and consultancy firm Zero2IPO Research Center show that there were 141 equity crowdfunding platforms in China at the end of 2015. 2,338 projects have been successfully funded, with nearly RMB 10 billion of total investment. Besides Dongjia and Alibaba’s Ant Financial, cyber security giant Qihoo360 has also set foot in equity crowdfunding with its platform 360 Taojin.
(Top photo from www.redsh.com)