Traditional Informal Finance Versus Crowdfunding in China

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


Informal finance has been omnipresent in China for a long time and for certain reasons. Crowdfunding, in particular, the Chinese versions of crowdfunding provide true alternatives to informal finance and eventually could bring some change to China’s financial sector. However, the advantages and disadvantages of traditional informal finance (TIF) and crowdfunding respectively differ according to the actor in perspective. Therefore, this chapter deals with the stakeholders of TIF and crowdfunding—Chinese startups, the Chinese government, Chinese crowdfunders and Chinese crowdfunding platforms. This chapter considers the implications for each stakeholder, the benefits of TIF vs. CF for the respective actors and tries to evaluate under which circumstances crowdfunding for them could become a game changer of informal finance.


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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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