Analysis On The Financial Mode Of Crowdfunding And Its Risk Assessment

In recent years,crowdfunding is favored in China which as a novel financial investment pattern has been vigorously promoted by the government and achieved efficient allocations among entrepreneurs and investors while the Internet industry rapidly developed.Of a non-organized venture capital mode,crowdfunding is extremely different from the well-known commercial lending institutions.It pursues profits,nevertheless,primarily aims to provide support for the start-ups or project founders with their entrepreneurial dreams.The success of the funded organization being listed on the 'new three board' and its smoothly operation will promote the original crowdfunding platform autonomously.Consequently,investment values economic profits and startup relies on post-funding while crowdfunding meets investors and entrepreneurs' needs in every way.At the moment,China has a rapidly developing economic market with every trade thrives under a speedy development of information technology.However,Micro and Small Enterprise(MSE)s' encounter of the huge financial problem under such situation has been a stumbling block to the flow of wealth for China.As the largest beneficiary of the crowdfunding platform,MSE not only enables the organization's large-scale adjustment in financial structure but also elegantly solves the source of funding.A far-reaching significance it has to China's future economic development that MSE relies on its own ability to stimulate innovation and promote the entrepreneurship and employment of society.This essay conducts a wide range of domestic and international references in crowdfunding and ends up with a new qualitative-quantitative risk assessment method-Gray Analytic Hierarchy,by delving into the process and mode of crowdfunding and doing researches on its operation along with integrating AHP and Gray Fuzzy Analysis.The essay employs this method to reassess MSE's financing risks with the model of AHP to compare the results of qualitative risk factors made by business decision-makers,and then re-uses Gray Fuzzy Analysis of the conclusion to further into quantitative analysis.The method reduces subject factors from the decision-makers on risk assessments,and assures the result of correctness,objectiveness and scientifical-ness.In closing,the essay makes an analysis on MSE's future development trend and application prospects with an additional premise that MSE obtain a measure to reduce the financing risk and the stability of the industry.