Risk Control Analysis Of Crowdfunding Business Model

Crowdfunding has become an incredible force to promote the development of businesses worldwide.This form of fund-raising has been very popular in developed countries.So many small companies,independent artists and entrepreneurs in the early step of their project will choose this financing way.The World Bank report commissioned by infoDev studies the promise and the risks of crowdfunding as a tool to finance innovation and growth in developing countries.China and Indonesia with its large potential,still facing problem in finding solutions to fund small and micro businesses,while crowdfunding may become a solution which could contribute meaningfully and successfully to a country's economy.In recent years,due to the rapid development of social networks,mobile payment,cloud computing,search engines and other Internet-based modern science and technology,China's internet finance began to develop rapidly.Since 2013,the internet payment system,P2 P network lending and crowdfunding financing as the representative of internet financial development,still facing challenges.While Indonesia is having a bigger problem and challenge due to the lack of infrastructure.Crowdfunding provides a new way to financing for start-ups through the Internet,which can alleviate the information asymmetry between investors and issuers.As a kind of newly emerging things,the crowdfunding caused a great deal of attention.In this paper,I analyze the domestic and foreign present situation,the affecting factors of successful crowdfunding,the risks and exit mechanism in crowdfunding through literature analysis,comparative analysis,combining qualitative research and quantitative research methods.The study found there exist a large gap in the market of crowdfunding between developing countries such as China and Indonesia and developed foreign countries,that is to say,the development of the crowdfunding is relatively slow in the developing countries.The economic,social,cultural and technology had become the important factors which affect the development of crowdfunding.This paper proposes the rationalization proposals from the following aspects.While all possible risks before,during and after have been analyzed and given solving suggestion.