Research On The Influence On Success Of Financing By The Online Project Information On Equity Crowdfunding Platform

In this paper we use the data of the project information on AngelCrunch.com to do the empirical research from the point of the trading behavior influencing factors. We learned whether and how investors in equity crowdfunding market can identify the quality and the risks of projects and make the right decision by analyzing the online project information. In this paper, the research can be divided into two parts:Firstly, we studied the influence of the information of a launched project on the investor willingness to invest, in order to analyze how the investor evaluate the quality and risk depending on the information of a project; Secondly, we studied the influence of the information of a launched project on the project financing, and analyze how online informations influence the result of the financing of a project.We found that the information has a significant effect on investor's willingness to invest and the ultimate result of the financing. Compared with Social Capital, Risk Level and Project Characteristics, External Certification which includes ac, investment and the number of fans plays a more important role in the decisions of investors significantly. It is noteworthy that the variable recommended is not well used by investor, in contrast, projects that obtained the platform's recommendation is more difficult to attract investors compared with those have no recommendation. Under the same conditions, the recommendation of the platform has a negative effect in the willingness of investors. This can be interpreted as:although the project received a recommendation, the AC fund does not invest for some reason, which will make investors a negative impression of the project to some extent, and transfer the main direction of the project to analyze the reasons why it does not obtain financing from AC fund.Neither Social Capital nor Project Characteristics can influence the financing well, only experts, the frequency of the update of a project and the minimum amount of financing can predict the financing result well. Only the state of project released in the level of risk information can significantly predict the results of financing, projects that are more mature can attract more investors and the financing is more possible succeed. In addition, investors can not realize the value of the team member of a project at the time of investment, in spite of having more team resources, investors have little investment enthusiasm.The empirical results show that, despite certified investors on AngelCrunch.com are more professional investors, but they also present a certain degree of herding in investment decisions. This also reflects that the "Leading investor+Following investor" mechanism can play a significant role in equity crowdfunding.Based on empirical results, this paper made Recommendations from three aspects: Improving the supervision mechanism of equity crowdfunding, optimizing the service of the platform's information and technology, strengthening Investor Education to enhance the information service capability of equity crowdfunding platform.