Research On The Risk Prevention Of Equity-Based Crowdfunding

In November 2014,premier li keqiang put forward a pilot project on equity crowdfunding at a meeting of the state council.Since then,the number of Internet equity-based crowdfunding platforms has exploded.Equity-based crowdfunding has the characteristics of low threshold,wide audience and high efficiency.It plays an important role in promoting the transformation and upgrading of China's innovation and entrepreneurship and traditional enterprises,and provides impetus for the transformation and upgrading of China's economic system.It is also an effective way to solve the financing problem of small and micro enterprises.However,China's equity-based crowdfunding has only experienced a few years of development,and the business model and legal supervision system are still imperfect.The equity-based crowdfunding process includes the qualification examination and information disclosure of the project party,qualification examination of qualified investors,compliance operation,fund management,project withdrawal and realization The platform has a series of risks in carrying out equity-based crowdfunding.Therefore,it is of great significance and value to study the risk prevention of equity-based crowdfunding.This paper appling Internet finance,management,law and other related theories,taking the platform to carry out equity-based crowdfunding business process as the path,learning from the experience of the development of equity-based crowdfunding in Britain and the United States,and the measures to avoid risks in the "Everybody " platform,research the equity-based crowdfunding platform should how to effectively prevent risks and protect the legitimate interests of investors and project parties in the context of the increasingly clear regulatory policy and the rise of financial technology."Everybody " platform adopting "led+with" pattern,establishing a limited partnership for investors,establishing risk compensation fund,cooperating with banks to carry out "investment banking" business,avoiding the equity-based crowdfunding risk,has a great significance for the industry development.This paper based on the Equity crowdfunding source of risk,experience in the development of equity-based crowdfunding in the UK and USA and "Everyone" platform risk prevention measures,make a conclusion that the platform can prevent risks from the diversified layout project,strict investor admittance threshold,strict project party credit investigation and information disclosure mechanism,establishment of risk compensation fund,strengthening post-investment management,perfecting exit mechanism,making the investor specific to avoid legal risks,working with incubators to build an ecosystem.