Startup media company launches controversy (3)

For crowd-funding projects, each shareholder, or members in Zhu's case, bears less risk due to the small sum invested compared to that of private ventures, and if Zhu and his team give transparent financial information to members and eventually bring back capital and even a yield to members, the model can be considered a win-win situation.

"I hope Zhu's action may push forward the development of a legal system regulating crowd-funding, a nice model for startups in China," the source said.