Study On The Application Of SMEs' Crowdfunding Financing

With the call ‘mass entrepreneurship and innovation' by our premier Li Keqiang,there are more and more small and medium-sized enterprises in our country.However,SMEs have some financing difficulties in developing.The crowdfunding as a new financing way appears with the development of the Internet.It can help SMEs achieve innovation projects.It can also solve financing difficulties for SMEs by solving the dilemma of information asymmetry,reducing the financing threshold,raising the financing efficiency and reducing the financing cost.The crowdfunding includes four types.The reward-based crowdfunding and Internet non-public equity-based crowdfunding are most widely used in practice.For the low success rate of financing projects,the paper finds the solutions by case analysis.First of all,the paper introduce the problems for SMEs when financing and the crowdfunding to point out that there is an applicability between the SMEs' financing and the crowdfunding.Secondly,the paper points out that though crowdfunding develops rapidly,the success rate of it is not very high.The crowdfunding has four types and two of them are more practical for SMEs' financing.They are reward-based crowdfunding and Internet non-public equity-based crowdfunding.Thirdly,the paper takes ‘cattle technology' and ‘bump car sharing' as examples to analyze how successful enterprise practices in crowdfunding case.Finally,the paper takes successful as benchmark to tell other SMEs how to achieve financing goals.The SMEs can enhance internal management to improve the success rate of financing projects.The research shows that:(1)Crowdfunding is an effective way for SMEs' financing.It can solve the information asymmetry problem,reduce the financing threshold,improve financing efficiency and reduce financing cost.(2)When using crowdfunding,SMEs should enhance management in these parts: select types according to financing goals,select platform according to industry,set reasonable financing objectives and period,keep a good capital structure,set a series of investment level to meet different investors' demands,and do continuous information disclosure and risk management.