Research On Legal Risk Prevention And Control Of The Participants In Equity Crowdfunding In China

In recent years,as a new type of Internet financial model with the combination of Internet and finance,the equity-based crowdfunding has developed rapidly at home and abroad.The equity-based crowdfunding solves the problems of financing difficulties for the small and micro enterprises at the start-up period,and the equity-based crowdfunding platforms were also appeared in large numbers.However,compared with the perfect legal system of foreign countries,the development of the equity-based crowdfunding at home is still in the stage of exploration.It mainly reflects in two aspects: on the one hand,the domestic equity-based crowdfunding was lack of effective governmental supervision and the corresponding management regulations in the actual operation;on the other hand,the current development of the equity-based crowdfunding was also failed to form an effective risk prevention mechanism and operation mode.Finally,various reasons lead to all kinds of problems or risks,and the problems existing in the practice impede the development of the equity-based crowdfunding.In this paper,firstly a research of the equity-based crowdfunding has been taken,including the origin,development and so on,and then this paper reviews the development status of the equity-based crowdfunding from economic and legal levels,and leads readers to comprehensively understand the equity-based crowdfunding.Secondly,selecting the representative of the domestic equity-based crowdfunding platforms(such as Angelcrunc.com,Dajiatou.com),the author illustrates the operation process,then summarizes the general process of the equity-based domestic crowdfunding,and analyses the legal relationships among the participants.Thirdly,this paper reveals the risks of borrowers,investors and platforms in the process of the equity-based crowdfunding.And based on the risks of the equity-based crowdfunding in practice in China and benefited from the experience from foreign countries,some suggestions are put forward to establish a more operational legal system.