Yunchou helps raise 100m yuan for over 30 start-up projects

Yunchou.com, a domestic Internet platform for the equity-based crowd-funding business, has helped raise 100 million yuan ($16.12 million) for more than 30 start-up projects since it was established a year ago, according to the company.

"Equity-based crowd-funding targets start-up business that are specially engaged in innovation and the Internet industries," said Yu Xiaolei, deputy general manager and co-founder of Yunchou.com.

The platform, which was launched by Shenzhen Qianhai Crowd-funding Finance Service Co in May last year, became one of eight members approved in January by the China Securities Regulatory Commission to conduct equity-based crowd-funding business.

"Internet-based crowd-funding brings about a significant shift in financial concepts, becoming an important way to solve small and micro enterprises' financing predicaments," said Yu.

Equity-based crowd-funding is a kind of public capital raising, providing finance in support of third projects with a certain portion of equity as reward, inventivizing investors by allowing them a piece of the pie in a budding startup business.

In China, crowd-funding is subject to relevant laws governing fundraising.

According to the Corporate Law, a limited liability company should be established by no more than 50 shareholders that make capital contributions.

Amid the booming Internet industry, a growing number of startup business have benefited from equity-based crowd-funding, according to Yu.

Yunchou.com has also become the first company of its kind in China to receive institutional investment, after two investors put 17.64 million yuan into the company recently.