| Internet finance develops very rapidly in recent years,which has a great effect on the traditional finance.The innovations of internet finance online business enrich the Chinese financial market. Equity Crowdfunding is a new kind of measure to raise money. It is based on internet. It can achieve the perfect docking between the financiers and investors through advanced information exchange platform and social network. Equity Crowdfunding is a complementary to the traditional finance. On one hand, Equity Crowdfunding can help small and micro enterprises which are lack of financing channels to raise funds at low cost through the internet platform. One the other hand, a large number of ordinary people have the chance to get involved in equity investment. But we should recognize that Equity Crowdfunding is a form of innovation.The uncertainty of Equity Crowdfunding likely to cause Crowdfunding risks and investor rights protection issues. The investors face tremendous risks. This paper is composed of introduction, main body and conclusion.The main body is divided into three parts:The first part introduces the definition, characteristics and developing situation of Crowdfunding, and explain why we should pay attention to Equity Crowdfunding. Then, this part introduces the typical operation models of Chinese and foreign Equity Crowdfunding websites.The second part firstly analyzes the legal relationships of the Equity Crowdfunding, including the relationships among investors, Equity Crowdfunding websites and financiers. Secondly, legal risks of Equity Crowdfunding are analyzed, especially the legal issues and the investors protection issues.The third part firstly introduces the supervisory experience of American and British Equity Crowdfunding. Secondly, this part evaluates the Private Equity Crowdfunding Management Appraoch(Trial)(Draft), which is drafted by Chinese Securities Association. At last, according to the foreign practicing experience, trying to put forward some suggestions on the supervision of Equity Crowdfunding in China. |
