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Crowdfunding Site DemoHour Secured Millions of Dollars Series A Funding from Matrix Partners and Intel
Zhang You, founder of Kickstarter-like crowdfunding site DemoHour booked millions of dollars of Series A funding from Matrix Partners China and Intel (source in Chinese). The capital will be used to develop crowdfunding services for hardware and art, etc, said Zhang.
Launched in July 2011, the site received $500 thousand seed fund from a Taiwanese angel investor in the same year, according to Baidu Baike (a wikipedia-style service in Chinese).
Users can launch projects on the platform to gatherer money from the public. Project creators choose a deadline and a minimum funding goal. If the goal is not met by the deadline, no funds are collected, a provision point mechanism. If the fundraising is successful, project creators should pay back the investors according to previously agreed conditions.
In order to encourage users to adopt the service, DemoHour stopped to charge the 10% commission fee from July 4 of last year. It also launched a plan to raise overall 100 million yuan ($16 million) from one hundred enterprises to fund startups on the platform.
Similar domestic crowdfunding services include, AngelCrunch and 5ichuang.