A Case Study On Equity-based Crowd-funding At The New Tertiary Board Of Huaren Tiandi Corporation

As a dispensable part of China's economic development,small and medium-sized enterprises have contributed a great deal to the economic development of our country since the reform and opening up.Along with China's economy entering the "new normality",the slow-down of GDP growth,and the prominent contradiction of industrial structure,the development and expansion of small and medium-sized enterprises has become an important pole of strategic transformation for China's economy.However,the biggest problem hindering the development of small and medium-sized enterprises in China is financing difficulties.In view of the financing practice of small and medium-sized enterprises,there are two new trends in recent years.On the one hand,a new financing mode,the internet crowd-funding financing is just unfolding,based on the advantages of low threshold for investors entrance,investment facilitation,promotion of government policies,internet crowd-funding financing,especially equality-based crowd-funding has become a useful supplement to the financing channels for small,medium-sized and micro enterprises;on the other hand,as the basic market in the multilevel capital market structure,the new third board market has developed rapidly in recent years,tens of thousands of small and medium-sized enterprises have realized their first financing in the capital market through the stock transfer system.Combining the new third board with internet equality-based crowd-funding,taking advantages of low threshold of crowd-funding financing to solve the problem of capital resource,using access and exit mechanism of improving equality-based crowd-funding in the new third board market,will broaden the financing channels for small and medium-sized enterprises and provide a realistic possibility to achieve a lower cost financing.Starting from the analysis for the financing difficulties of traditional small and medium-sized enterprises and the new equality-based crowd-funding,this paper sorts out the research literature on the financing difficulties of small and medium-sized enterprises,concept of equality-based crowd-funding,mode of operation,financial performance according to classification orders,the small and medium-sized enterprises financing theory,introduces the financing theory,social capital theory and Internet financial theory of small and medium-sized enterprises and their practice process,which lays the theoretical foundation for this paper;by drawing lessons fromthe actual cases of the Huaren Tiandi company's equality-based crowd-funding in the new third board market,this paper carries out discussion.Through the financial index,financing cost,speed and cycle of financing,exit channel before and after financing,this paper compares and analyzes the differences between Huaren Tiandi's equality-based crowd-funding in the new third board,ordinary financing and equality-based crowd-funding not in the new third board market,it can be seen that equality-based crowd-funding in the new third board market has obvious advantages over other financing.Equality-based crowd-funding in the new third board market is of great significance to solve the financing difficulties of small,medium-sized and micro enterprises,which is the further reform for the traditional financing,promotes the innovation of financing models,enriches investment opportunities,is a new type of financing mode that can be extended and used for reference.Meanwhile,the appearance of equity-based crowd-funding in the new third board market in the way of Internet has the popularity and risk of internet financing,it is necessary to further strengthen the protection of legal risks and information disclosure.In the future,equity-based crowd-funding in the new third board market will be a more attractive way of financing with broad prospects for development.