Business Model and Development of the Crowd Funding Platform Renrentou
Product Number：
EN_2020JJYJR_8201
Page Views：
688
CaseName：
Business Model and Development of the Crowd Funding Platform Renrentou
Authors：
Li Gaoyong,Mao Jiye
Author Affiliation：
Renmin University of China
Enterprise/Organization：
Renrentou (www.renrentou.com)
Industry：
Finance
Discipline：
Economics & Finance、Information Technology & E-commerce
Scale：
SMEs
Language：
English
Type of Case：
Decision Case
KeyWords：
business model, risk control system, management after finance, case study
Abstract：
This case describes business model and development of Renrentou, a crowd funding platform which focuses on investment of stores. Zheng Lin, the CEO of Renrentou, is a critical factor of the rapid growth of the company. However, as a new style of internet finance, crowd funding of investment on stores does not get acceptance of financiers or investors. Zheng Lin led a group of grass-roots entrepreneurs to negotiate with one project by one project, and promise investors this style of internet finance is safe to attract them. With the increase of investors, Renrentou strengthen risk control in order to reduce the risk of projects, for example before the project starting finance will be audited seven different times. After the successful financing there is financial control system to strengthen financial management. In addition to risk control, management after finance is an important part of the business model. This case also interviewed an investor about his views on Renrentou.
Intended Audience：
MBA,EMBA
Data Source：
Primary
Publication Date：
2015
Revision Date：
2020
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