An Analysis On Dispute Between Fei Du Company And Nuo Mi Duo Company Over Equity-based Crowd Funding

The fusion of internet and financial come with the high-speed development of internet technology, and crowd funding come with it.The equity-based crowd funding is a new model for financing based on internet. Enterprise will transfer part of the equity for financing, General investors became company shareholders through subscribe the equity,Enjoy shareholders’power and enjoy the brings of future returns. Equity-based crowd funding help the growth type of medium and small enterprise solve the problem of hard financing, provide low-cost and convenient financial support for them.and also supply a platform to general investors, let the general investors invest in the growth type of medium and small enterprises, share the brings come with the growth of the enterprises. Equity-based crowd funding is the basic and important part of the multi-level capital market in China. As a new thing of internet financial, it contains complex risks,and it is hard to monitor it. The relevant rules is almost blank. With the high-speed development of the equity-based crowd funding, The contradiction of the crowd funding platforms, the financiers and the investors becomes obvious.The suit between Beijing feidu network technology limited and Beijing nuomiduo catering service limited is a responsibility case based on equity-based crowd funding.As the missing of related rules, They have different understanding on the legality of the equity-based crowd funding and the obligation between the two others.Based on the analysis of the details of the case,combine with the experience of the theory and practice experience in all over the word. This article declares the focus problem, analysis the location of the equity-based crowd funding,the information disclosure through it,the protection for the investors.Clear the features of the equity-based crowd funding;the obligation of information disclosure for the crowd funding platforms.Based on the openness of the Internet audience and the infinite malleability of information, equity-based crowd funding should be an act of public funds. Based on the position of it in China’s capital market,the financier should be medium and small enterprise. The equity-based crowd funding is on the initial stage, the financing amount should not be too large, the crowd funding platform should fully disclosure the platform information;the projects’qualifications and the projects’ operations. The equity-based crowd funding should be legitimate, at the same time we need to build an effective legal risk prevention system for Crowd Funding Platform, to fully protect the interests of investors, and ensure this innovative financial instrument to be healthy and steadily developed.