Analysis On The Commercial Model Of Equity Crowdfunding

2015 was seen as the first year of Equity-based Crowdfunding, when the number of platform achieved an explosive growth, from 65 to 125. Essentially Equity-based Crowdfunding is the O2O mode of the traditional way for equity investments, that is to make equity investments in the primary market via Internet. The development of Equity-based Crowdfunding has great significance to the real economy in China. First of all, Equity-based Crowdfunding is a part of direct financing, which can reduce enterprise leverage, provide cash flow to small enterprises and help to build multi-level capital market. In addition, Equity-based Crowdfunding makes it possible for the public who have a demand of asset allocation in the primary market to participate in equity investment and obtain benefits matching the risk. The case analyzed in this thesis is "JD Owner", the largest domestic platform of Equity-based Crowdfunding. The study may have an important reference for the development of domestic Equity-based Crowdfunding.This thesis reviews some Equity-based Crowdfunding relevant literatures and theories, introduces the present developing situation of Equity-based Crowdfunding, and analyzes the factors to promote and to restrict the development of Equity-based Crowdfunding. Then this thesis analyzes the main business model and effects of Equity-based Crowdfunding platform via "JD Owner" case. It can be found after case studies, through normative analysis methods of quantitative analysis and case studies, that although the platform’s business model has been able to achieve market-oriented operation of the primary market financing, there are still many problems in the chain of the entire business model for its being in early phases of development.Therefore, according to the problems found in the case studies, this paper puts forward some recommendations regarding Equity-based Crowdfunding platform and legal regulatory policies respectively, as well as predict for future development. In the long term, Equity-based Crowdfunding will be an important part of capital market.