A Research On The Factors Affecting The Successful Financing Of The Crowdfunding In China

In recent years, the development of the internet finance has brought more vitality into our economy which has affected all aspects in our life. Crowdfunding, the internet finance innovation model, provides a new way to solve the problems of financing difficulties among the small and micro enterprises under our imperfect financial circumstance. It is still difficult for small and micro enterprises to finance successfully from crowdfunding. 2015 semiyearly report of China crowdfunding shows:equity-based crowdfunding has a low success rate, such as zhongtou8, the success rate of all projects in zhongtou8.cn is not more than 50% and the average success rate is just15.29%. Relative to the equity-based crowdfunding, the success rate of reward-based crowdfunding is comparatively high, such as Tencent Donation, the average success rate has reached 40%. In a word, the current success rate of crowdfunding remains to be improved. This paper will do the research from the following parts for the funders to improve the success rates.1. From a micro point of view, as to the reward-based crowdfunding, independent variable includes originator’s credit, social capital, the degree of the project description and other relevant factors. The result of financing is a dependent variable, when it succeeds, dependent variable is 1. While when it fails, dependent variable is 0. The logit multivariate regression analysis shows that social capital factors, the degree of the project description and other relevant factors have a significant effect on successful financing of crowdfunding. Specifically, the comment of the current projects in social capital factors has a negative significant effect on the successful financing of reward-based crowdfunding, while the amount of text and project updates in the degree of the project description have a positive significant effect on the reward-based crowdfunding.As to the equity-based crowdfunding, independent variable includes social capital,human capital, uncertainty and the investment risk, meanwhile financing proportion is a dependent variable. The multivariate regression analysis shows that the social capital,uncertainty, human capital and the risk of investment have a significant effect on successful financing of crowdfunding. Specifically, it is the comment of the current projects of social capital factors, projects in the expansion or maturity period and project updates of the uncertainty factors, core team number of human capital factorsand the project valuation of investment risk factors that will have a positive significant effect on successful financing of equity-based crowdfunding, while financing shares of the uncertainty factors has a negative significant effect on financing of the equity-based crowdfunding.2. From a macro point of view, this paper mainly chooses total 80 samples including crowdfunding success index which is compiled by “The First P2P”( a third-party crowdfunding service organization) and Shanghai Composite Index from May 30 th, 2015 to Sep.27 th, 2015. Crowdfunding Success Index means the ratio of the nationwide successful equity-based crowdfunding projects’ number the same day to the total number of items. ADF test shows the Crowdfunding Success Index and Shanghai Composite Index are not stationary sequences. The ADF test following the first Difference of the Crowdfunding Success Index and Shanghai Composite Index shows they are for a single whole. Then, Jonhansen test shows there is a co-integration between the Crowdfunding Success Index and Shanghai Composite Index. At last, the VEC model proves a negative relation between the Crowdfunding Success Index and Shanghai Composite Index in a short time.This paper shows there is a negative relation between the fluctuation of stock market and the successful financing of the crowdfunding in long term or short term through the empirical study. This gives those small and medium-sized enterprises and Individuals who are willing to finance from crowedfunding at right time a enlightenment. The shortcoming is that the samples of the research between stock market volatility and crowedfunding financing is not enough. This is because the crowedfunding Success Index just has 80 samples which is compiled from May 30 th to Sep 27 th. The research above in this paper is an experiment, with the time flying, the researchers in the future will get more samples and obtain more valid conclusion.3. The research of factors about crowedfunding is a progress. As to the factors of the successful reward-based crowedfunding, this paper do the further research by adding word, picture and video to the factors of the degree of the project description. As to the equity-based crowedfunding, we add the current project comments of social capital factor to the paper. The innovation is that we add the macroanalysis to the research about the factors of the crowdfunding. This is a research and experiment.