Why crowdfunded restaurants close down overnight, in the end what kind of crowdfunding model is safe?

Why did the crowdfunded restaurant close down overnight, and what exactly is crowdfunding?

What is "crowdfunding"? Simply put, it's the gathering of people's power and money to accomplish something. For example, on Amoy Dream, independent filmmakers can post their movie plans or scripts, or even just an idea for a movie, in the form of videos, pictures, or text, and estimate the target amount of money needed to make the movie, the number of days to raise the money, and the rewards for the backers. If netizens (supporters) are interested in your movie project can support you with funds, and when your project reaches the target funds within the number of fundraising days, you have successfully raised funds.

The term crowdfunding is translated from the foreign term crowdfunding, i.e., mass fundraising or crowd funding, which is translated as crowd funding in Hong Kong and crowd fundraising in Taiwan. It consists of initiators, followers, and platforms. With the characteristics of low threshold, diversity, relying on the power of the masses and focusing on creativity, it refers to a kind of fund-raising from the masses to support the behavior of the initiating individual or organization. Generally speaking, it connects sponsors and sponsors through a platform on the Internet. Mass fundraising is used to support a variety of activities, including disaster reconstruction, private fundraising, election campaigns, entrepreneurial fundraising, artistic creation, free software, design and invention, scientific research, and public **** projects.

Modern crowdfunding refers to posting fundraising projects and raising funds through the Internet. Compared with traditional financing methods, crowdfunding is more open, and the commercial value of the project is no longer the only criterion for obtaining funds. As long as the netizens like the project, can be crowdfunding way to get the first capital of the project start, for more small business or creative people to provide unlimited possibilities.

Crowdfunding Composition

Initiators: people who have the ability to create but lack the funds;

Supporters: people who are interested in the story of the fundraisers and the rewards, and who have the ability to support them;

Platforms: Internet terminals connecting the initiators and the supporters

Crowdfunding financing is different from equity and debt financing Crowdfunding platforms require that the initiators of the project not use equity, debt or capital as the support for the project. Crowdfunding platforms require that project initiators cannot use equity, debt or capital as a return to backers, and neither the project initiator nor the platform can promise backers any financial gain. Dreams must be returned in kind (e.g., products, publications) or media content (e.g., by providing streaming or downloads of videos or music). A backer's support for a project is a purchase (pre-order).

Crowdfunding is, in a sense, a kind of Web 3.0, which makes the social network and the "majority funding the minority" fundraising cross encounter, through the agreement mechanism of P2P or P2B platform to make the financing and fundraising between different individuals possible. To build a crowdfunding business model, there are three organic components: project initiators (funders), the public (funders) and intermediaries (crowdfunding platform).

(A) project initiator (fundraiser)

The project is a non-profit activity with a clear goal that can be accomplished and has a specific time of completion, such as making an album, publishing a book or producing a certain electronic product. Projects do not return money in the form of equity, bonds, dividends, interest, or other funds. The project initiator must have certain conditions (such as nationality, age, bank account, qualifications and education, etc.), have 100% ownership of the project, be free from control, and be completely autonomous. The project initiator has to sign a contract with the intermediary organization (crowdfunding platform) to clarify the rights and obligations of both parties.

Project initiators are usually creators or small and micro-enterprise entrepreneurs who need to solve the problem of funding, but there are also individual enterprises that, in order to strengthen the communication and experience of users, strengthen the extended functions of crowdfunding mode such as market research, product pre-sale and publicity and promotion while realizing the fund-raising goal, and call for the public (potential users) to intervene in the research and development, trial production and promotion of the products in their capacity as project initiators with a view to obtain better market response.

(2) The public (funders)

The public (funders) is often a huge number of Internet users, who use online payment to make small investments in their own interest in creative projects, each contributor has become an "angel investor". Instead of a financial return, the return to the funder for the successful realization of the project is a sample product, such as a Pebble watch, or tickets to a concert or a record.

The process of the funder funding the creator is the process of moving his or her consumption funds forward, which not only improves the efficiency of the production and sales processes, producing new products that would otherwise be impossible to launch with the traditional investment and financing models, but also meets the niche, detailed and personalized consumption needs of the funder as a user.

(C) Intermediary (crowdfunding platform)

The intermediary is the builder of the crowdfunding platform, the supervisor and counselor of the project initiator, and the defender of the interests of the contributors. The characteristics of the above multiple identities determine the complexity of the function of the intermediary organization (crowdfunding platform) and the heavy responsibility.

First of all, the crowdfunding platform should have network technical support, and according to the relevant laws and regulations, adopt the way of virtual operation to publish the project initiator's ideas and information on financing needs in the virtual space, and the prerequisite for the implementation of this step is to carry out a meticulous real-name audit before the project goes online, and to ensure that the project content is complete, executable and valuable, and to make sure that there is no violation of the project guidelines and requirements.

Secondly, after the project has been successfully funded, it is important to monitor, coach and control the smooth rollout of the project. Finally, when the project is not executable, the crowdfunding platform has the responsibility and obligation to urge the project sponsor to refund the funders.

Of course, after the crowdfunding from different levels of understanding are different, can also be simpler, that is, we get money together to do a thing, after the success of the work, dividends.

Zhang Jiajia crowdfunding to create a "rolled-up" crayfish store within a year almost all closed star crowdfunding restaurant into a "failed investment"

After insisting on a year, the famous writer, director Zhang Jiajia and the "Chu orange". "Chu orange" planner Jiang Zhengwen co-founded the "volume Fu and his friends" restaurant 8 stores in 7 have been closed liquidation. Crowdfunding investment in the restaurant **** builders found that in the crowdfunding investment process there are many problems, including the operation of the store license is not complete, private borrowing, unauthorized changes in the name of the store. In this regard, the crowdfunding platform said that the post-investment department is actively assisting in dealing with the aftermath and has taken various measures to safeguard the interests of the ****builders.

Rolling Fortune restaurant opened 8 down 7 a year, a few days ago, crowdfunding platform "start it" on Zhang Jiajia and Jiang Zhengwen *** with the creation of the Rolling Fortune restaurant project to explain the latest situation. Pointed out that the project in April 23, 2016 in the beginning of the bar on-line, the project finally completed the actual Jinan, Xi'an, Zhengzhou, Xiamen, Hangzhou, Shenzhen, Ningbo, Beijing *** 8 city store crowdfunding. The city stores were opened one after another in 2016, and then, due to poor operation and other reasons, all seven city stores except the Jinan store have now closed down and entered the liquidation stage.

December 22, 2015 and April 23, 2016, the rolled-up restaurant project twice in the "start it" crowdfunding platform to start crowdfunding. At that time, "Chu Orange" planner Jiang Zhengwen launched crowdfunding in the beginning of the bar, said that he and the writer Zhang Jiajia together to do the "roll Fu" online crayfish brand, and decided to start the preparation of the roll Fu offline experience restaurant.

At the time, the project used best-selling author Zhang Jiajia as a marketing gimmick, revealing his photo and story several times to publicize it: "Zhang Jiajia is already China's 'best storyteller', and apart from the fact that we can tease each other about our tummies and hair, we can also tell stories about how we're doing," he said. can tease each other about their stomachs and hair, for the year's bold words hope to account for the desire to open a crayfish store is incredibly strong." At the same time, Zhang Jiajia himself also released a "crawfish recipe" microblogging, adding to the appeal of the project.

In the first crowdfunding in Shanghai restaurant, crowdfunding rules, 300 yuan per person can become a member of the membership, members enjoy a year of 60% off the settlement of the qualification; such as payment of 30,000 yuan can become a co-founder, co-founder of a single store each share 1% dividends. The project on-line, due to the celebrity support exceptionally hot, on-line 25 hours subscription amount reached more than 2 million, the final subscription rate of 284.35%, **** there are 326 people involved in crowdfunding. Choose 30,000 yuan of the highest support *** builders have 100 people, but the crowdfunding project only 50 co-founders of the quota. The project manager said, "We will communicate with you one-on-one" and select from among them. 4 months later, Beijing's Rolling Fu project went live. The project, which was originally scheduled to raise 1 million yuan, eventually reached 16.38 million yuan, exceeding the target by 15 times, and 630 people participated in the crowdfunding campaign. At the same time, Hangzhou, Shenzhen, Shenyang, Dalian, Zhengzhou, Jinan, Xi'an, Ningbo, Xiamen and other cities were identified as "in-depth city partners", announcing the simultaneous opening of crowdfunding. The project description said, this ten cities and ten stores crowdfunding, can be completely realized roll Fu online and offline through, and open the "dine-in + takeaway" ecosystem.

After the closure of the restaurant, a number of ****builders think they have been "cheated". One invested in Zhengzhou roll Fu project **** builders said, "we 50 people invested 1.75 million in the project in the opening of a month after the closure of the closure, 1.75 million instant evaporation, caused all the beginning of the bar this project crowdfunding people's indignation. With the initiator to reach a relevant compensation agreement and then repeatedly cheated. Is not this project how to prepare for the funds should not be in the platform within the supervision?"

Investment also said: "No store is a good result. Part of the store is still a liar in doing, high-priced collection of transfer fees, take *** builders of the money spent indiscriminately, operating less than half a year, the person in charge of the commitment have not seen, I do not know where to find an individual as a store manager, half a year to *** builders of more than 1 million are lost."

Another ****builder said the company privately borrowed more than a million dollars without consulting with the ****builder. As of March 2017, "the store's total loss amounted to more than 1.9 million yuan," of which the operator Evening Carp's borrowing amounted to 1,162,800 yuan and 519,000 yuan in unsettled payments. At the same time, Jiang Zhengwen said crowdfunding funds have long been exhausted, he has personally advanced 700,000 yuan, the company is now unsustainable. A report shows that from August 2016 to March 2017, the operating company of Beijing Rolling Fortune Restaurant earned 980,000 yuan, crowdfunding money of 1.98 million yuan, all kinds of expenditures totaled 4.22 million yuan, with a balance of -1.26 million yuan.

The financier said "it's a completely failed investment" The actual operator of the Rolling Fortune restaurant is Shanghai Evening Carp Network Technology Co. Upon inquiry, the company's shareholders include two natural person shareholders and three partnerships.

Publicly available information shows that the Rolling Fu restaurant has been financed twice. in June 2015, the Rolling Fu was Xu Xiaoping Zhenge Fund millions of yuan of angel round financing. Since then, the beginning of the bar to participate in the funding of the creation of the fund after the completion of crowdfunding at a valuation of 100 million yuan into the roll Fu restaurant. However, the beginning of the bar said, it is a limited partner, and does not participate in its investment decisions, but also can not participate in the actual operation of the Rolling Fu restaurant, the two sides do not have any business behavior and financial transactions. As with *** builders, based on the trust of the promoter team, especially Zhang Jiajia, and out of recognition of its city expansion capabilities, under the industry endorsement of the 50 million valuation of the Zhenge Fund, Creative Capital Fund took a stake in Rolling Fortune Restaurant at a valuation of 100 million after the completion of crowdfunding. The closure of the city stores is a devastating blow to the parent company of Rolling Fortune Restaurants, and Creative Capital Fund has suffered a huge loss as a result, "It's a completely failed investment".

Beginning Bar said, because of the liquidation situation faced by the city stores are not the same, *** builders of their respective demands and expectations there are some differences in this project, the beginning of the bar also has a number of employees involved in crowdfunding, suffered losses. At present, the progress of the liquidation and disposal of the city stores are as follows: Shenzhen store has been liquidated; Zhengzhou store and Xi'an store ****builders have signed a compensation agreement with Jiang Zhengwen; Xiamen store has been assisted by the beginning of the bar and bear the costs of the lawyers to enter the process of implementation of the post-arbitration; Hangzhou store and the Beijing store because of the dispute over the operation of the responsibility of the beginning of the bar have been provided with legal services to support the program, and I hope to reach a consensus on the disposal program as soon as possible.

Crowdfunding is risky, investment needs to be cautious, part of this article from Tencent News. Welcome to add attention, praise, forwarding and sharing, collection.