Cultural media crowdfunding is growing rapidly, crowdfunding financing models may be widely used

at present, crowdfunding in the cultural and media field covers many sub-areas, such as pre-sale crowdfunding for cultural and creative works, film and television crowdfunding, publishing crowdfunding, news crowdfunding, game crowdfunding, and so on. Crowdfunding in each subdivision has derived different crowdfunding schemes and return systems according to the attributes and characteristics of the subject matter.

original title: cultural media investment and financing crowdfunding may become new channels

in the "guidance on speeding up the Construction of a Mass Innovation support platform for Mass Entrepreneurship" issued by the State Council earlier, this paper puts forward the "four-crowd" support system of "mass entrepreneurship, crowdsourcing, crowdfunding and crowdfunding", and makes it clear that "mass financing" Crowdfunding has become an important part of China's multi-level capital market and an important support of the country's "mass entrepreneurship and innovation" strategy, while crowdfunding continues to be the tuyere for cultural media investment and financing in 2016.

strong > crowdfunding for cultural media has grown rapidly / strong >

since 2015, crowdfunding in the field of cultural media has been booming one after another. According to the incomplete statistics of Xinyuan Wenzhi-China Cultural Industry Investment and financing data platform, a total of 1940 cultural and media crowdfunding were completed in 2015, with a total fund-raising scale of about 958 million yuan. In terms of fund-raising quota alone, the 958 million yuan fund-raising plate can hardly be compared with the hundreds of millions of yuan mergers and acquisitions of A-share listed companies, but from the perspective of development trend, both equity crowdfunding and return crowdfunding are in the range of rapid growth. In particular, the equity crowdfunding model, as a rapidly rising "dark horse" in 2015, has become an important entrance to absorb small social capital into the field of cultural media investment and financing. Under the background that the country strongly encourages entrepreneurship and innovation, the crowdfunding model provides rare start-up funds for the early development of some cultural and creative projects and self-media projects, and creates the possibility for these projects to grow gradually with the continuous improvement of the multi-level capital market, and then land on the new third board, gem and other financing platforms.

at the same time, the number of financing projects as high as 1792 also shows that the financing activity in this field is quite high, and the micro-financial model of crowdfunding can effectively activate scattered dormant resources. help to promote new cultural creativity and productivity.

at present, crowdfunding in the field of cultural media covers many sub-areas, such as pre-sale crowdfunding for literary and creative works, film and television crowdfunding, publishing crowdfunding, news crowdfunding, game crowdfunding, and so on. Crowdfunding in each subdivision has derived different crowdfunding schemes and return systems according to the attributes and characteristics of the subject matter.

strong > crowdfunding model may be widely used / strong >

first of all, strengthening social ties with interest linkages helps to activate idle social resources. In essence, crowdfunding strengthens and activates the original social relationship network with contract-based interest connection and return mechanism. this innovation in the field of microfinance is reshaping the contemporary social connection mechanism together with the rapid change of modern communication technology. Especially under the equity crowdfunding model, people who are not familiar with before can build a shareholder team through the agreement of crowdfunding shares and related rights and interests, and the credit endorsement and credit stack between shareholders can form community organizational resources. on the other hand, the contract-based crowdfunding interest connection can in turn transform the original weak relationship into a strong relationship oriented to the same interest goal. Activate the energy and resources behind each crowdfunding participant with the joint force of development.

secondly, crowdfunding is used to unite the community to promote a new type of cultural consumption demand. In contemporary society, the network has meticulously penetrated into all kinds of production and life scenes, and then reshaped the crowd connection, forming a variety of highly personified communities, and the social demand shows distinct characteristics of structural change. based on online and offline social interaction needs to replace the past individual consumption demand of a single product to become a new demand derivative point. The use of crowdfunding as a means to strengthen the cohesion of the community itself will also give rise to a lot of emerging demand, especially in the field of cultural media. Therefore, the significance and value of crowdfunding should be examined under the background of the rise of sharing economy, community economy and consumer finance.

thirdly, the integrated operation of "fund-raising, investment and loan" is helpful to solve the core pain point of cultural media enterprise financing. Cultural media projects have the characteristics of strong innovation, difficult to replicate success and difficult to predict income. Traditional financing methods generally do not favor this field, and due to the rapid changes in audience iteration and public cultural consumption taste, cultural media projects are facing huge market risks from project establishment, production to realization. At the same time, due to the ideological nature of the load of cultural media products, there are policy risks in content review, broadcast, launch and public release. In order to better disperse the early investment risk of the project, the introduction of crowdfunding model in the early stage is a feasible choice, based on the financing needs and risk characteristics of different stages of product production and distribution. The financial model of "raising, investing and lending" is more suitable for the catalysis and incubation of cultural and media projects. The early stage crowdfunding can not only raise funds and share risks, but also detect the degree of market preference, introduce external resources needed for the project, and create a joint force for project incubation. Through the test of the crowdfunding platform, VCs can have a more rational and comprehensive judgment on the project, and it is also conducive to the arrangement of follow-up financing links. When the later product is perfect or the model is mature, and the downstream development or large-scale expansion is needed, the bank credit funds will intervene again, which is consistent with the risk preference and risk control system of the banking system. After the early theoretical discussion, it is believed that this model will be widely used in the field of cultural media in the future.

strong > potential risks also need to be paid attention to / strong >

first of all, China's current credit system is not perfect, information asymmetry is serious, investors lack bargaining power and regulatory channels, and fraud occurs frequently. Crowdfunding is not currently included in the central bank's credit system, and project sponsors can use false information to circle money. At the same time, equity crowdfunding for the qualification of the leader is not clear, if the leader conspires with the project sponsor, then other investors are faced with the possibility of loss caused by moral hazard of the first two. In addition, there are still loopholes in the actual operation at the level of capital supervision.

secondly, the profit model of crowdfunding platform is not clear, and it is difficult to survive, which affects the ability of project operation and promotion. China's crowdfunding market is still in the cultivation stage, and good projects are concentrated on superior platforms, which take crowdfunding as part of their overall business ecological layout and can have their own resource compensation mechanism. on the other hand, the ordinary crowdfunding platform is lack of funds and operation capacity, which affects its ability to promote the operation and follow up of the project. In addition, if due diligence, risk control and other links are not enough, the potential risks will naturally double.

thirdly, the market risk of cultural and media projects is on the high side, coupled with a rush of low-level repetition, crowdfunding returns are difficult to guarantee. Most of the cultural and media crowdfunding projects are minority, lack of a clear pricing reference system in the market, and their valuation is often relatively arbitrary, and the market is in a process of constant change. in different stages of project development, we may face the overall iteration of the valuation model, especially in the consumption upgrading cycle and the intergenerational transition period of mainstream consumers, the products or models that have won market success may not be replicable at the new node. In addition, once a certain type of IP is successful, similar works will soon flock to bring late market saturation, the over-development of the value of IP and the rapid transfer of hot spots of public cultural consumption lead to the continuous shortening of IP life cycle, and the crowdfunding return is difficult to be effectively guaranteed. In addition, the ideological attribute of cultural media products and the existence of content censorship mechanism still lead to the risk of miscarriage or failure to broadcast in the middle of the project, which also make the rights and interests of investors and returns can not be effectively protected.

in addition, the laws and regulations and regulatory system of cultural media crowdfunding need to be improved, and the literacy and risk control awareness of all participants need to be improved. At present, the laws and regulations and regulatory system of crowdfunding in China are still in continuous improvement, while crowdfunding for cultural and media projects spans the two major areas of content business supervision and financial innovation supervision, and there is a regulatory vacuum. Equity crowdfunding has made great progress in 2015, but equity investment itself is a highly professional and risky field, and the general public does not have relevant background knowledge and risk control consciousness. driven by the demonstration effect of successful projects, blindly follow the trend, once problems arise in the middle or later stage, improper handling may lead to public opinion events or public events. Not only the crowdfunding investors, but also the operators of the crowdfunding platform vary in quality, and they do not have enough ability to accurately assess the risks of the enterprise or project.

in recent years, the innovation of investment and financing mode of cultural media plate emerges one after another, the influx of financial capital promotes the rapid development of the industry, and the whole cultural media sector performs well in the capital market. At the same time, we should also be soberly aware that the development of investment and financing in the cultural media sector is difficult to be separated from the overall development stage and pattern of China's capital market. Since the summer of 2015, China's stock market has fluctuated sharply, some high-valuation bubbles burst in the first half of the year, and the continued malaise of the secondary market has a direct impact on the capital operation of the primary and first-half market, which restricts the healthy and rapid development of the cultural media venture capital sector. Affected by the rapid iteration of public cultural consumption preference, cultural media products have great uncertainty in the realization of market value, and their ideological attributes are faced with non-market risks in content censorship, broadcasting and public screening. Therefore, we can not be happy for short-term prosperity, comprehensive risk assessment and prevention should become the focus of media investment.

Edit: yvette