Research On The Crowd Funding Modes' Operation Of Small-and-Medium-sized Cultural Enterprises

As a shiny new industry of 21th century,culture industry is growing in robustness and it has become an indicator for promoting industrial structure adjustment.However,at the same time,many medium and small cultural enterprises face fund shortage problem,even if those companies occupied an important position of culture industry.Crowd funding,a typical representative of internal finance,would help those companies go through with this difficult situation because of its own characteristics,which are the lower barriers of investors' participation,the diversity of projects and friendlier user-inventor-investor interaction.An integrated workflow including screening,funding and risking control strategy has been established for crowd funding although its rationality is uncertain now.Crowd funding mode not only reduces the barriers for financier and investors,but also make an investment process with high participation and identity.It provides novel and flexible return on investment,which could meet different needs of investors.Compared with professional crowd funding platform,the majority of crowd funding platform's management is disorder.According to incomplete statistics,crowd funding of medium and small cultural enterprises boosted explosively in 2014 and slowed down in 2016.In contrast with Royalty-based Crowd Funding which has large number of successful projects and supporting but low single project financing,Equity-based Crowd Funding has less number of project but higher single project financing and longer funding period.The major risks of funding mode centered on investment,management,policy and regulation,resulting mostly from insufficient disclosure information,the lack of professional cultural assets assessment and risk control strategy,the lack of intellectual property protection,unclear definition of the rights and obligations of the participants and change of national policy.Government,funding platform and small and medium-sized should work together to improve small and medium-sized cultural enterprises crowd funding mode.The government should draw a timetable for process of the relevant legislation on this crowd funding industry from the perspective of macro-control,to protect intellectual property assets of small and medium-sized cultural enterprises.In addition,sharing of traditional credit information system with internet credit system could be another concern of government.As for the funding platform,their focus would be on continuous improving of funding process under cooperation of third party,more professional risk control and fees system development based on projects' risk level to achieve the fair sharing of financing costs.Small and medium-sized cultural enterprises need chose a suitable crowd funding mode to meet their demand.Better quality of public offerings and more effective marketing campaign,such as make full use of social media to broadcast their product,are always right.