"Internet + Public Chips" Prospects Are Optimistic That Smes Face Financing Difficulties

According to incomplete statistics, by the end of June 30, 2015, there were at least 198 Internet public funding platforms in China. At least 35 of them had closed or no operation signs, 11 had business pformation, and two accounted for 23% of the total number of platforms.

With the dramatic increase in the number of platforms and the layout of the industry, the establishment of a new platform and a firm foothold, the overall size of the public sector is expanding rapidly.

At the same time, some of the industry's market share is far ahead, ranking the first tier.

"I think standing

The flow of the draught will make China's economy fly. "

In March 5th, Premier Li Keqiang put forward the plan of "Internet +" for the first time in the government work report, and formally established it as the national strategy.

The Internet has gradually jumped out of the scope of an industry and is becoming a new engine of the national economy.

In response to the prime minister's call, the China Electronic Commerce Research Center took the lead in publishing the "Internet" think tank series of books in the major think tanks nationwide. This article is selected from the first systematic and panoramic disclosure of the Internet + industry practice in the country, namely, Internet +: Industrial draught.

According to the current Xinhua Bookstore, airport CITIC bookstore, Tmall, Jingdong, Dangdang, Amazon China, suning.com, Taobao, micro shop, the big O2O channels are selling well in the forefront of the best seller list.

The following is the preemptive reading of this book:

Financing difficulties are bottlenecks in the development of small and medium-sized enterprises in China. Similar to China's emerging market countries, there are widespread difficulties in financing small and micro enterprises and new fields of innovation and entrepreneurship.

After several years of development, the traditional financing channels have already formed a more perfect system, including strict regulations in the credit system, risk assessment, credit products and so on.

For small and medium-sized enterprises, these rigid regulations often bring about many practical problems, such as financing difficulty, high cost and high threshold.

The average cost of private financing of SMEs in China is around 20%, and some even exceed 50%.

Financing is difficult and financing is expensive. Small and micro enterprises are facing difficulties in survival and development.

There are many reasons for the financing problems of small and micro enterprises. Financing difficulties and high financing are two different problems: financing difficulty refers to the availability of funds.

Financing refers to the higher cost of capital, which means that the cost of capital is higher than the required level, or that the cost of capital exceeds the affordability of the enterprise.

The former is mainly caused by financing difficulties, and the latter may be caused by the high level of capital interest rate.

Small and micro enterprises, financing difficulties in new areas of innovation and entrepreneurship is the "new normal".

The allocation of credit resources is unbalanced.

Traditional credit products of banks can not meet the needs of enterprises. On the other hand, due to safety considerations, banks are more willing to put credit emphasis on large and medium sized enterprises with large assets and strong profitability.

Banks' demand for financing for small and micro enterprises is not enough, credit conditions are set too high, and institutional products are single.

The threshold of the securities market is too high.

At present, the equity financing of small and micro enterprises is still in the initial stage of exploration. The number of small and micro enterprises that meet the equity financing is small and small, and the time for listing and financing is long, the cost is high, the procedures are many, and the control is strict, which makes it difficult for most small and micro enterprises to rely on capital market financing.

Financing guarantee service platform is not perfect.

China's guarantee industry started late, and the credit guarantee system is not perfect. The number and type of guarantee fund are difficult to meet and meet the financing needs of small and micro enterprises. The credit enhancement function and guarantee amplification function of the guarantee institutions have not been brought into full play, resulting in the financial institutions - small and micro enterprises - guarantee institutions have not been well integrated in the financing process of small and micro enterprises.

The bottleneck of their own development is the inherent factor leading to financing difficulties.

First, the management basis of small and micro enterprises is relatively weak, with excessive concentration of property rights, lack of flexibility in internal decision-making and rigid mechanism.

Two, small and micro enterprises have large operating risks, few physical assets, low technological level and weak wind resistance capability, which affect capital accumulation and credit financing of small and micro enterprises themselves.

Three, small and micro enterprises have poor credit concepts and moral risks, which make financial institutions and potential investors unable to accurately judge the operating risks and financial risks of small and micro enterprises.

Four, small and micro enterprises themselves lack the necessary collateral, directly affecting the financial institutions of small and micro enterprises credit audit and distribution.

Government support is not enough.

For a long time, the government has attached great importance to the development of large enterprises, attached great importance to the construction of large projects, neglected the support and support for small and micro enterprises, especially in terms of policy guidance, financial support and preferential tax incentives, and did not build better and more platforms for small and micro enterprises.

"Internet + crowd raising": Internet financing mode offers unlimited possibilities

The financing difficulty of SMEs has always been a historical problem. In recent years, the development of Internet finance has become the biggest opportunity for Internet financial enterprises to serve small and micro enterprises.

Internet finance itself serves the traditional financial industry and fills the gap that traditional finance can not solve.

Small and micro enterprises are an important channel to provide more employment opportunities. In China, their services and employment opportunities are disproportionate.

Internet finance has no physical outlets to a certain extent reduce costs; on the other hand, data accumulation can be used to provide credit for small and micro enterprises by means of automation, and Internet financial enterprises can provide certain services to small and micro enterprises by using Internet technology.

Crowd raising as a new type of Internet

Compared with the traditional way of financing, the mode is more open, and the availability of funds is no longer the sole criterion of the business value of the project.

As long as the public likes projects, the first capital of the project can be obtained through the crowd raising way, and generally the scale of the first fund-raising will not be very large, which will provide unlimited possibilities for more small businesses or creations.

Crowd raising mode compared to traditional financing characteristics

Big data application, reduce costs, Internet public chips can use big data application development after data accumulation, reduce costs, automatically credit scoring for SMEs, and quickly seize small and medium enterprises financing market with the help of Internet fast network credit and crowd raising mode.

This brings different profit models and financing channels to Internet financial enterprises and small and medium-sized financing enterprises.

As for traditional financial institutions, its complicated and complicated wind control system and credit reporting mode will also be subjected to certain impact, forcing them to undertake systematic innovation and pformation while ensuring safety.

Low threshold, strong participation, so long as you have ideas and creativity, you can initiate projects. Anyone who is interested in a particular project can subsidize the project, which is irrelevant to status, status, occupation, age and sex.

Investors are mostly ordinary people, most of whom are ordinary grassroots people, and only a few are companies, enterprises or venture capitalists.

The diversity of projects has diversity in the direction of public funding. For example, the project category on the naming time website in China includes design, technology, music, film and television, food, comics, publishing, games, photography and so on.

Projects focus on creative initiators must first of all their creativity (design, finished products, planning, etc.) to the degree of display, in order to pass the audit of the platform, rather than just a concept or an idea.

In anticipating market demand, creative people can enhance communication with investors and understand their needs and suggestions for new products. Investors will not be prejudiced against the sponsors because of their backgrounds, origins and resources. They are keen on sponsors' projects and encourage, criticize and suggest to the sponsors.

The sponsors can collect these suggestions to produce a product suitable for most people.

Cheap marketing supporters are among the best consumers and loyal supporters, and can also drive potential consumers around them to attract another group of fans to develop and promote a wider market.

New opportunity -- breaking the bottleneck of policy and supervising the backbone

On November 19, 2014, Premier Li Keqiang chaired a State Council executive meeting. For the first time, the meeting put forward the view that "we need to establish a quick mechanism for small refinancing of capital market and carry out a pilot scheme for raising public interest in equity financing", and decided to take further effective measures to alleviate the problem of high cost of financing.

In the afternoon of December 18th, the management method of private equity financing and public offering (Draft) was drafted by the China Securities Association, which released the legal positioning, business boundaries, platform threshold and other categories of equity financing, especially setting the investment threshold for investors (personal financial assets not less than 3 million yuan RMB or personal income per capita in recent three years not less than 500 thousand yuan). At the same time, investors are required to accumulate no more than 200 people.

Previously, regulators have further affirmed the role of equity financing in alleviating the high cost of corporate financing, bringing another life to the stock market.

The release of the draft ensures that the crowd raising platform is neutral and intermediary services are positioned, making clear the difference between the equity financing platform and the illegal ones.

But too high a threshold will make the shareholding crowd eventually become a giant game, reducing the vitality of the market.

In March 11th, the general office of the State Council issued the guiding opinions on developing public innovation space and promoting public innovation and Entrepreneurship (hereinafter referred to as "guiding opinions"). The view points out that in order to promote the new trend of innovation and improve the venture capital and financing mechanism, we will carry out the pilot scheme of Internet share raising and financing, and enhance the service capacity of all chips to the public's innovation and entrepreneurship.

The Internet stock raising financing pilot has been supported by policies, which may usher in new opportunities and opportunities for domestic public funding.

Crowd raising "thrive"

According to China

Research Center (100EC.CN) monitoring data show that in 2013, the global online crowd raising platform reached 889, and the industry scale increased from 530 million US dollars in 2009 to US $5 billion 100 million, an increase of 88.9% over 2012.

As of the end of June 2014, there were 1423 financing projects in the first half of the domestic public financing platform, with a total amount of RMB 187 million 910 thousand and 700 yuan. It is estimated that by 2025, the scale of China's public funding will rise substantially to 460-500 billion US dollars, which will account for 300 billion of the total public funds raised in the world, accounting for 1/2 of 90 billion US dollars in the developed countries.

More and more entrepreneurs are relying on the crowd raising platform to raise start-up funds for their projects.

In China, as of the end of 2013, the number of small and micro businesses in China was more than 55000000, and the demand for credit was about 22 trillion yuan, while the national financial institutions only invested 13 trillion yuan in loans to them. At the same time, the number of enterprises and individuals deposits exceeded 100 trillion yuan. China urgently needed new investment management, and public funding was a good financing channel.

To successfully raise funds, we need some skills. Different types of fund-raising platforms are suitable for different products.

Regardless of the intention to establish fund-raising platform, and also raise funds on the platform, the current crowd raising mode has four types: Lending-based crowd-funding, Equity-based crowd-funding, Reward- based crowd-funding, and donated public funding (Donate-based crowd-funding).

From the above picture, we can see that the number of financing events in the equity class crowd raising mode is higher than that of the reward crowd raising mode. On the one hand, it shows that the development of China's shareholding mode is growing rapidly, and it has become one of the principles of financing for Internet and Internet enterprises. On the other hand, it shows that the incentive crowd is still in its early stage in China, and there is huge room for development.

According to the monitoring data of the China Electronic Commerce Research Center (100EC.CN), there were 1423 financing incidents in the first half of 2014, raising about 187 million 910 thousand and 700 yuan.

Among them, there were 430 equity raising events, the amount of financing for the platform was about 155 million 630 thousand yuan, 993 cases were rewarded, and 108 thousand people actually participated in the project. The amount of platform financing was about 32 million 280 thousand and 700 yuan, accounting for 82.82% and 17.18% respectively.

At present, China's crowd financing is mainly manifested in the instrumental application of finance to the Internet technology, and the crowd raising platform is the role of the platform to provide financing information in the process, and is still in the initial stage of the development of Internet financing.

Crowd raising financing is still a typical example of the bottom end of a financing channel.

The development of equity based public offerings in China is relatively weak, and only the two angel investment platforms have been successful.

However, we believe that after China's laws on crowd raising supervision, especially the law on the issue of stock raising supervision, the shareholding platform will increase substantially, and the platform mode will become more mature and attract more angel investors.

Problems in the early stages of public funding development:

Lack of innovation makes it hard for investors to impress investors.

The biggest reason for the failure of public funding is the relatively limited innovation environment and creativity in China, especially the high quality projects.

The project submitted by the financiers on the public chips only has a pass rate of 3%, and 97% of them will be screened out.

Therefore, there is a big gap between domestic and public sector in terms of innovation and technology content.

People's income level is low and investors lack.

The low level of public income and the low awareness of public funding also have a great impact on the crowd financing dilemma.

Crowd raising is a financing mode of some middle and upper levels, which supports public funding. Its return is not real gold and silver, but it is more meaningful and valuable, such as spiritual value and value of friends.

However, due to the relatively small number of white-collar workers in China, the relatively low overall income level, and the lack of awareness of public funding, only a small number of people are willing to invest in public funding projects, so this road is a long way to go.

It involves fear of illegal fund-raising.

Crowd raising is a kind of fund-raising mode for the public. In accordance with relevant domestic laws, it is easy to get the hat of illegal fund-raising.

With the introduction of the US JOBS act, the market suddenly appeared explosive growth. The two sides liberated productive forces, allowing start-ups to finance individuals and allow individual investors to invest in start-ups, which greatly liberated productivity and production relations.

But there is no such policy in China.

The platform has high similarity and few kinds of ideas.

The domestic crowd raising website is highly similar. Even though some websites have focused on a certain type of creative public funding, it is still a similar website because there is no unique website experience and product logic under its sub category.

When it comes to foreign chips, when it comes to thinking about KickStarter, when it comes to domestic public funding, there are many opinions about it.

Entrepreneurs don't know which website to publish, and investors do not know which places to look for.

"Internet + crowd raising": the future of China's public chips

The crowd raising mode is the same as the P2P mode. As an attempt of Internet financial innovation in recent years, there will inevitably be a situation of mud and sand in its growth process, and it will inevitably undergo a process of ebb and flow.

Therefore, we should speed up the study of Internet financial regulation, draw lessons from overseas practices in the aspect of public finance supervision, implement supervision over investors and financing entities, strictly enforce the access of public funding platforms, and clarify regulatory measures.

In China, a large number of public funding websites have been developing rapidly, and public funding has become an important area of Internet finance.

Relative to the balance Bao and other "baby Legion", as well as the P2P net loan big red, the third wave of Internet Finance -- the size of the public chips in domestic development is still relatively small.

In the eyes of some researchers, the crowd raising has a disruptive financing capability. However, when this capability can become a reality, it has become the focus of discussion.

The crowd raised naturally has such characteristics, through the crowd to help more young people realize their dreams, but at present, the development of the domestic public chip industry is still facing all kinds of challenges.

The development of China's crowd raising industry should actively seize the opportunity of internationalization.

In July 1, 2014, Jingdong financial congregation business "congregation" was officially unveiled.

This is followed by Alibaba entertainment treasure and Baidu, another Internet giant to enter the field of public funding.

Baidu's crowd raising project is once again being handled by Baidu financial center, advancing into the film industry ahead of time, and promoting the development of domestic cultural industry.

Alibaba Digital Entertainment Group launched the "entertainment treasure" despite the insurance coat, but the core is the crowd.

Entertainment treasure is not strong in personal investment, but it is entertaining and similar to foreign products.

Typical case: Jingdong public funding: "Three Fathers" detonating the "air purification market under the firmament"

In October 21, 2014, the highest level of Jingdong's public funding was refreshed: the "three dad" children's special air purifier was launched on the twenty-ninth day, and the total raised amount exceeded 10 million, becoming Jingdong's first tens of millions of public funding.

The three dad air purifier is a smart air purifier for children's air purification market. Dai Saiying, founder of the company, said that the original intention of the product was to provide a layer of protection for his unborn child.

In September, the three father also got the A round financing of Gao Rong's capital of 10 million US dollars, and the 1500 dollar Focus Media quoted price resources.

The success of the three father is inseparable from the help of the media and capital.

Jingdong's public funding platform has only two months on the line, and the number of over million projects has reached 7.

This shows that Jingdong platform resources, the advantages of billion class consumer traffic.

Intelligent hardware projects have been recognized and strengthened by more and more investors. This time, along with the three dad's "zero particle" intelligent air purifier project, I believe there will be more dream people coming to the Jingdong public financing platform to launch their dreams, and more people will support the entrepreneurs who have dreams.

Haze weather detonated the air purification market, and the care of children behind the "Three Dads" has even touched the hearts of parents.

As a small household appliance, air purification products have the characteristics of low entry threshold and large market demand, so it is easy to open the market with low cost.

The three Papa products use their product feelings to build their own business models, which add story color to the business and conform to the market user view, product concept and participation view, and finally win the market.

Rights and interests crowd raising and equity financing are walking on two legs for all the chips of Jingdong, and the on-line stock raising does not mean that people will be ignored.

There will be more projects to expand the popular culture, life aesthetics and public welfare direction. More and more people's lives will be affected by the public funding of Jingdong. Public funding will surely become an innovative and quality life style.

Sing song Mai song: change the traditional KTV drainage mode by raising equity shares.

Aiming at market segmentation: the crowd raising mode has gradually become known to the public, and there are more and more public shareholding platforms and shareholding raising projects. Large Internet companies are also eager to try.

A few days ago, the public shareholding platform "public rush" announced the formal operation. Compared to the numerous public financing websites in the market, the difference between the public investors is that they only focus on the food and drink fields that are closely related to people's lives.

In the environment of public spending being banned, rent rising and entertainment choices more, KTV still has just needed.

In the future, KTV groups will be more subdivided in age and occupation, focusing on 18 to 35 year old office workers and student groups.

Mode service: one of the ways that KTV should survive in the Internet age is to pform the traditional KTV's shop opening mode, survival form and share bonus rules, while consolidating the users of the mobile internet terminal, even letting these users go to the line, and driving the KTV consumption from the online.

The "first show" of all the chips will be cooperated with singing.

In March 5th, the Chongwen KTV store will sing on the banner of the song. The store will visit the public to raise 46% of the shares and raise 3 million yuan.

In order to enable more investors to participate, each investor's total raise amount is set between 5000 yuan and 50000 yuan.

The prospect of cross border cooperation: sing with 220 million registered users, and now the 3 singing songs, Mai song KTV, has made considerable traffic without much diversion.

According to the CEO plan, if the online users are guided and pferred to the offline store, then the development prospect of KTV will be worth looking forward to.