A Study About The Operating Mechanism Of Crowdfunding Platforms Under The Background Of Internet Finance

In recent years, the development of Internet finance is in a boom, its convenience and quickness make a huge impact on people. It is not only as a supplement to the off-line of business, there are also many innovation on the online business. As one of the innovations, crowdfunding business model make it real to raise money from a large crowd of people for one project via internet. It is also an approach to connect the small company with private capital. The small company find it hard to raise money in its seed stage while the private capital searching its way to invest. Crowdfunding is certainly a good way to solve the problem. But there are a lot of issues to be discussed in the operation of Crowdfunding.This paper uses case study research method, we choose three typical cases from three kinds of crowdfunding platforms for analysis, renrentou.com, zhongchou.com and paipaidai.com.As an qualitative research, this article adopts ground theory and the NVivo software as a qualitative analysis tool to integrate and code the data what we collect; accordingly, this article selects conduct a cross case comparison research,selecting six index and thereby making the theoretical resolution for the operating mechanisms of crowdfunding platforms.The first part of this issue discuss about the origin and definition of crowdfunding, and the other aspects of crowdfunding such as the character, development situation, successful case study, and the development of crowdfunding in China. The scale and mode of crowdfunding are also included. The second part of the issue is the literature review, including the crowdsourcing review, which is the source concept of crowdfunding. Then this paper presents the literature review about crowdfunding, including the definition of crowdfunding, the characteristics of crowdfunding,the current development status and the application of crowdfunding, and the operating mechanisms.The third part of the issue, the goodness of crowdfunding is discussed, it also plays a good role in solving the problem in raising money of micro-company, it makes an approach in personal capital and micro-company. The limited partnership system is a good incentive mechanism, flexible mode of operation and has tax advantages. For the fourth part of the congregation raised the issue in the development of crowdfunding. The fifth chapter is conclusion and suggestion, this part provides the research result and puts forward the management recommendations. In addition, this paper ends with the limitation and the further research direction.