Theoretical Analysis And Empirical Study On The Repurchase Terms Of Equity Crowfunding

Crowdfunding is a way for people,organizations,and businesses,including start-ups to raise or re-finance their activities through online portals(ie,all platforms).According to the different incentives,it can be divided into donations,products,debt financing and equity financing.Equity crowdfunding is the fund-raising through the public through the platform to sell part of the equity to finance,investors in the project after the success of the corresponding shares can be obtained by the company’s equity dividends in return for the return.Equity crowdfunding,first of all with the characteristics of private equity,most of the investment enterprises are not publicly listed start-ups,the lack of complete financial statements and sustainable cash flow,investment and financing there is a more serious information asymmetry.Second,this information asymmetry in the context of the Internet is a step closer to enlarge,because the two sides of investment and financing live far away,so it is difficult for both sides to have a face to face due diligence,and the large number of investors,easy to form a "free Ride " phenomenon,that is,personal income due diligence by others to share free of charge,so no one is willing to take action.Investment information asymmetry to enlarge the investment risk,investment risk to improve the financing side of the financing costs,financing costs to improve the reverse selection of financing groups,the end result is a good business to give up on the platform for equity financing,bad business Full of equity ownership platform,investors also give up investment in equity projects.In order to reduce the information asymmetry between investment and financing,people from various aspects of exploration,from the earliest Angellist "leadership + with the vote" model,to the recent "gambling agreement + equity repurchase" written investment agreement,and then To the 360 gold rush "long-term pricing" model,are from the traditional theory of mining in the context of Internet financing,in order to achieve weakening information asymmetry,to achieve the purpose of incentive compatibility.based on this background,the author explores the purpose and effectiveness of "gambling agreement + repurchase terms" in equity crowdfunding term sheet.This paper first analyzes the key risk points of equity crowdfunding,and then starts from the perspective of financial contract,discusses the structure of financial contract,and analyzes the effectiveness of redemption when it implemente in the process of cowdfunding.and finally the establishment of a simple signal transmission model to deduce the "gambling agreement + equity repurchase" in the context of Internet private equity in order to achieve a good business and bad business separation and balance.Finally,through the collection of Jingdong Finance and other 114 data for empirical analysis,this paper concludes that the existence of the "repurchase clause" has a significant impact on the share of the transfer of equity investors.