Crowdfunding is helping to fund and support start-ups in China. Photo: Courtesy of Gao Hong

Crowdfunding is an Internet-based fundraising model that has received widespread attention and enjoyed increasing popularity in China in recent years. First practiced in the US in 2006, crowdfunding allows people to offer money online to fund a project or a venture.

A perfect example of a crowdfunding program at work in China is the G coffee project.

G coffee is a coffee bar located in Sanlitun, Chaoyang district, which was set up by a professional community called the Grand Speed High-end Commercial Alliance which was formed in 2013.

The founder of the alliance, Gao Hong, used the crowdfunding model to select 100 people to be shareholders in the G coffee project, with every shareholder offering 30,000 yuan ($4,900).

The success of the G coffee project and the possibilities that crowdfunding offers, have helped the alliance develop their own brand value.

"The alliance was originally initiated in Sanlitun's business circle. After more than one year's fast development, the alliance has become a fashion brand alliance that covers Beijing," said Gao.

"I believe even more business value will be created in the future," added Gao.

When it comes to the purpose of the alliance, and their use of crowdfunding to obtain shareholders, Gao states that they mainly focus on providing participants with a sense of security.

"In terms of security, it is natural for everyone to feel worried about instability in the workplace," explained Gao. "In order to solve this problem, the alliance cooperates with international headhunting companies to help participants develop their own career plans."

These additional perks entice investors to join the alliance's crowdfunding projects, such as G coffee. Gao believes this creates an excellent platform to allow all participants to stand on the shoulders of G coffee to better realize their personal value.

Referring to the future development of crowdfunding in China, Gao is optimistic about its potential.

"Every new thing has its development stage. As an emerging business model, crowdfunding will win its place among numerous business models in the future," said Gao.