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Analyze The Development Of The Crowdfunding Market

Posted on:2017-02-21Degree:MasterType:Thesis
Country:ChinaCandidate:B X YueFull Text:PDF
GTID:2359330515463756Subject:Financial
Abstract/Summary:PDF Full Text Request
Thousands of small companies,independent artists and entrepreneurs now use crowdfunding to raise money for their projects.The process is simple: a person seeking money submits a project and the public can pledge money to any idea that they want to see succeed.In 2012 alone,nearly $320 million was raised through Kickstarter,the largest crowdfunding company.In addition to Kickstarter,dozens of other crowdfunding companies have sprung up,including both general-purpose sites,like Indiegogo,Angellist,ZIIBRA in America,Zopa and Crowdcube in the U.K.,Pozible and ASSOB in Australia,angelcrunch in China and those focused on funding specific types of projects.These companies,through their popular websites,now fund everything from scientific research to music albums to films,and individual donations can range anywhere from five bucks to several thousand dollars.The crowdfunding provides a new way to financing for start-ups through the Internet,which can alleviate the information asymmetry between investors and issuers.Furthermore,the crowdfunding is a useful supplement for multi-level capital market.As a kind of newly emerging things,the crowdfunding caused a great deal of attention.The frontier research of the crowdfunding is the innovation of this paper.In this paper,I analyze the domestic and foreign present situation,the affecting factors of successful equity crowdfunding,the risks and exit mechanism in equity-based crowd-funding through literature analysis,comparative analysis,combining qualitative research and quantitative research methods.Through the study of this article,I found there exits large gaps in the market of crowdfunding between China and foreign countries,that is to say,the development of the crowdfunding is relatively slow in China.The leading ratio,the number of co-investors,the number of interview and the minimum amount of investing had an effect on fundraising success.Such problems as legal risks,moral hazard,and withdrawal mechanism,had become the important factors which restrict the development of the equity crowdfunding.This paper proposes the rationalization proposals from the following four aspects.Start-ups should disclose information veritably,potential investors should pay attention to the rational investment to avoid herd behavior,and regulators should passed laws and regulations as soon as possible,strengthen investors education and improve the multi-level capital market.Thus,we can promote the development of equity crowdfunding and solve small and medium-sized enterprises financing problem.
Keywords/Search Tags:equity crowdfunding, signaling, risk, prudential regulation
PDF Full Text Request
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