The Analysis Of The Factors Of Financing Process For Equity Crowdfunding

Equity Crowdfunding is a part of Crowdfunding,it come out from 2009 abroad and after 4 years come to China. At present, the development of Equity Crowdfunding received the widespread attention in the global scope and attracted lots of investors and entrepreneurs as a new financing channel on the Internet. It provides more opportunities for the small and medium-sized enterprises that are difficult to raise money by original modes. Now it begins to replace other transactions because of its fast and convenient.Due to the rapid development of the Equity Crowdfunding, scholars paid more attention about that, but most of them research on risk and legislative content instead of the rational problems. This paper mainly studies the factors that influence the equity crowdfunding process and summarizes how the small and medium-sized enterprises raising capitals on the equity crowdfunding platforms. Also, this paper sums up the experiences for informal investors to reduce investment risk. The data is used from equity crowdfunding platform that is ZI BENHUI, and the sample includes 212 programs that are raising capital on this platform.The empirical analysis method is multiple linear stepwise regressions to test how the degree of information asymmetry influence the equity crowdfunding process from financing shares,project status with update frequency, the number of leading investors, investment risk, human capital and the degree of preheating before releasing. The results show that the number of leading investors has obvious effect for the financing process, at the same time, if the projects have sufficient preheating, the financing process is also influenced, however the indicators of human capital is lower influence for the financing process.According to the analysis results,this paper summarizes the factors affecting the process of equity crowdfunding. Also, according to the financing stages, this paper looks for the different factors on different period. Based on the results, it puts forward reasonable for investors and entrepreneurs to financing on the platforms.