The Concept of Crowdfunding in the West Versus in China

  • Andrea S. Funk
Part of the Contributions to Management Science book series (MANAGEMENT SC.)


Crowdfunding originated as start-up finance, yet in the meantime has undergone some change. Moreover, crowdfunding in China differs substantially from the original (Western) concept. This difference not least can be seen from the various terms that describe different forms of crowdfunding. Whilst Western literature mainly distinguish between four types of crowdfunding—donations, rewards, debts (P2P) and equity, Chinese scholars clearly distinguish between P2P and crowdfunding. Within the latter, Chinese further distinguish between product-based (donations and rewards) and equity-based crowdfunding. This chapter provides a detailed analysis of the different forms of crowdfunding in the context of New Institutional Economics, it contrasts crowdfunding to classical financial intermediaries and finally explains the rational argument behind the choice for crowdfunding.


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© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • Andrea S. Funk
    • 1
  1. 1.University of WürzburgWürzburgGermany

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