AngelList has been quite a phenomenon in Silicon Valley. It constantly transforms and is hailed as a sort of “disruptor” to alter the traditional way of funding early startups. In China, for sure we have copycats of AnglList, and there is this one called “AngelCrunch”. I noticed its birth in 2011; honestly did not pay too much attention and almost threw it into complete oblivion until recently the news of its “speedy crowdsource fundraising” RMB3.35 million within 14 days from at least 7 committed angel investors for an online music platform “LavaRadio” rekindled my unspeakable interests in it.

We know AngelList is already testing the idea of bringing smaller, accredited investors to put in USD 1,000 or more in seed stage of startups, along with those larger investors. However the scheme has to be in partnership with broker-dealer SecondMarket, not only to comply with securities law in US but also to create LLC fund to aggregate all the small investors and process all the transactions. So basically startups just need to deal with the LLC fund, instead of various small investors.

Now turn my eyes back to “LavaRadio” deal, Angelcrunch seemed to follow such trend, albeit not in the same mechanism as AngelList. After all Angelcrunch has not fully developed in China yet. While I felt excited for this new progress made by Angelcrunch, suddenly my burning question became “Is China ready for such AngelList kind of funding?”

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Cecilia Wu

Cecilia Wu is a contributor for Technode based in Shanghai who currently works as a market analyst for L’Atelier BNP Paribas. She is profoundly interested in internet related business & startups...