An apparel store on Taobao , Mirror Fun, raised 15 million yuan ($2.4 million) recently from 94 investors through Hong Ling, an online crowdfunding platform(report in Chinese). The highest contribution is 350 thousand yuan and the lowest is 50 thousand . As reported, most funders are individual investors that know little about apparel sector and got to know about the company in need of funding through the crowdfunding website.

Mirror Fun was set up on Taobao in 2008 and made eight million yuan in net profit in 2012, as disclosed. Its annual revenue is estimated to double in both 2013 and 2014. For this round of funding, the store sold 15% equity.

Being a Taobao store, Mirror Fun couldn’t borrow money from banks in 2010 when funding was needed. In the fourth quarter of 2010, the store turned to Hong Ling, where it would become one of the biggest borrowers in 2012. Some of the funders in this round of financing once lent money to Mirror Fun before.

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Tracey Xiang

Tracey Xiang is Beijing, China-based tech writer. Reach her at traceyxiang@gmail.com