The Factors Affecting The Performance Of Equity Financing:A Study In The Lead-Investor Model

As a emerging form of crowdfunding,equity crowdfunding which involves the offering of securities issued by fundraisers to investors are very popular in recent years.However,the research in equity crowdfunding relatively scarce is not symmetrical to its popularity.Based on the literature and theory of private equity and crowdfunding,this paper uses the linear regression model to explore the influencing factors of the financing performance in the equity investment.We collect data from JD crowdfunding which adopts "lead-investor model".In view of the important role played by the lead-investor,this paper analyzes the adjustment effect of the investment amout of lead-investor.To observe its impact on investment decisions,the project is divided into the Internet industry and the Non-Internet industry.We found that the project valuation,the lower limit of financing,the number of the shareholder and the minimum contribution significantly affect the performance of the equity financing.The investment amount of the lead-investor is negatively correlated with the total amount of the follow-contribution and has a significant positive effect on the relationship between the project valuation and the financing performance.However,it has no significant effect on the contribution and the contribution ratio.In addition,the projects in the non-Internet industry are more favored by investors because of their higher product maturity.