Applicability & Readiness Of Equity Crowdfunding To The Art Market In China

While Crowdfunding is a phenomenon that has been showing exponential growth in the recent years,Equity Crowdfunding is still in maturity,and its application to different industries has yet to be explored.In its traditional form,small investors face a long series of risks,such as illiquidity risk and information asymmetry.Similarly,the art market as investment faces many challenges and is still considered high risk,illiquid,still opaque,unregulated and disruptive features with high transaction costs and a high degree of specialization.Using a framework developed by the World Bank,this paper assesses the applicability and potential role of equity crowdfunding in the art market in China,arguing that Equity Crowdfunding in tangible assets through syndication is the best way to mitigate most of the risks related to this funding model.