Research On The Equity Crowdfunding Of Start-up Enterprises

As the Chinese economy has entered a "new normal" period, in order to maintain a healthy and sustainable development of China’s economy, we need to adjust economic structure and transform the method of China’s economy.Prime Minister LiKeqiang put forward that "public entrepreneurship and innovation" as the new growth engine of the economy, it can activate the positive market and release the new bonus of reform. However, the problem of the public venture, who is difficult and expensive to obtain financing has been hampered entrepreneurs passion, can not really achieve the desired objectives.Equity crowdfunding, as a new form of the Internet financial, can effectively solve this problem.This paper analyses in detail the concept, characteristics, operation mode of equity crowdfunding and the important role in helping entrepreneurs and Start-up enterprises solve the financing problem. Equity Crowdfunding,as a kind business model of Crowdfunding, is the best financing model in the future. That investors who are in the early days of a project idea or small and micro businesses release entrepreneurial information, project information in the equity crowdfunding platform,and make commitments to sell shares share to attract investors, after the project is success, investors can be rewarded in the form of equity. Equity Crowdfunding has the characteristics of "open, small and public," at the same time,its diverse and flexible business model to quickly and conveniently connected party financing, reflect the advantages of this financing model. Currently, there are two common business model in our country, one is no lead investor equity crowdfunding business models, the other is "lead investor+follow investor" equity crowdfunding business models, all of them can effectively solve the problem of financing of start-ups and small and micro enterprises.Equity crowdfunding,as a innovative financing model,is different from the traditional financing models, it is possible effectively to support small and micro enterprise develop better,which will help to stimulate innovation and entrepreneurship and create a good environment for the young people who have entrepreneurial ambitions and capabilities.Currently, equity crowdfunding in our country is in a rapid increase period, regardless of the number of equity crowdfunding platform or scale of financing, equity crowdfunding has a good development prospects. However, equity crowdfunding in our country is developing too fast and many problems continue to emerge, mainly in terms of legal risk, like risk of illegal deposits from the public, financial fraud and illegal issuance of securities; financing business model, like equity forms of investment, management after investment and exit mechanism; operation of financing platform, like service system is not perfect, operational risk, the probability of failure risk and financial risk. These problems above are a serious impediment to the equity crowdfunding, as a new kind Internet financing model, to play its due role in the country. Some legal cases remind us that we must take immediate measures to regulate and guide the development of equity financing model and crowdfunding platform. Combined with the current development of public equity and the experience of the abroad, put forward some suggestions. First, the relevant government departments must to speed up the legislative process and develop regulatory measures for crowdfunding platform; second, establish insurance and escrow; third, improve circulation and build equity exit mechanism; fourth, strengthen investor education and establish the scientific concept of investment; fifth, strengthen the credit system and standardize the development of equity crowdfunding platform. I hope the suggests above can make equity crowdfunding play its due role for economic development and make due contributions.