Analysis On Syndicates Model Of Equity Crowdfunding

The equity crowdfunding as an emerging network financing mode,it provides a good platform for SMEs innovation project financing,and the equity crowdfunding research has a great significance to China's substantial economy.This paper analyzes a case "Yun Touhui",which is a representative equity crowdfunding platform.The analysis of this case has a significant reference value for the development about domestic equity crowd founding industry.This paper reviews the relevant literature and theory of equity crowdfunding.It not only introduces the current situation and the main modes of the equity crowdfunding industry in China,but also analyzes the trust dilemma of it.Then combining the background of trust dilemma,we take "Yun Touhui" as a case to study the Syndicates and its effect.First,we introduced the main participants and the main operation process of Syndicates of the Yun Touhui's.Then the model is analyzed in theory and practice.Theoretically,based on theory of financial,this paper analyzes the theoretical advantages of the model from three aspects like the adverse selection,moral hazard and transaction costs.Then it finds out the "lead investor" in the model is a "credit intermediary"with the investors and the financiers essentially.Lead investors win the trust of investors using their own qualifications,professional advantages and post investment management behavior,and pass the trust to the financiers by endorsement.By reducing the asymmetry of information and transaction costs,they play the function of credit intermediary,which effectively solve the trust dilemma of equity crowdfunding and contribute to the occurrence of the transaction.Practically,this paper analyzes the model from three critical stages:the front,the middle,and the back.We find that there are still many risks on the chain of operation of the whole pattern like project overvaluation risk,interest conflict risk and equity exit risk.Based on the actual operation effect of the huge investment platform's pattern,this paper puts forward some suggestions for the domestic equity crowdfunding.This paper analyzes the success factors and potential risk about the Syndicates,through literature review method,case study method and comprehensive analysis method.It provides the theoretical support for the future development in domestic equity crowd funding industry,so it has a strong significance.