Risk And Prevention Of The Equity Crowdfunding Platform

With the rapid development of China's economy,the scale of domestic investment keeps rising,which makes more and more people seek for asset management and increase their investment demand.Crowdfunding is a mode of investment and financing for the development of interconnection techniques and financial industry.It is conducive to enriching financial market level and product,as well as actively exploring and standardizing financial service innovation.The current equity-based crowd funding is in the development stage,which is easy to show the high risk of the over-financing,high valuation and so on in financing projects.In addition,investor's professional ability is not good at present,thus increasing the risk of equity crowdfunding.What's more,the number of crowdfunding platforms in 2017 is down about 50% from 2016,and a large number of non-benign crowdfunding platforms have been withdrawn from the market.Based on this situation,we need to explore the root of the problems in financial industry development.This paper chooses jingdong equity-based crowdfunding platform as a case,mainly considering the following aspects.First of all,jingdong equity-based crowdfunding platform was launched late,but its successful financing amount of the year was the first among 130 equity-based crowdfunding platforms.And every amount of the top ten financing projects is more than 20 million yuan,which get great influence and attention.Secondly,jingdong is relatively perfect in information disclosure when compared to other equity-based crowdfunding platforms,and people can obtain complete financing data.Finally,jingdong equity-based crowdfunding platform has established a certain risk control system,which can be researched and discussed.Therefore,this paper attempts to explore the enlightenment and significance for China's development in equity-based crowdfunding platform through the case of jingdong,and promote the healthy development of the financial industry.This paper focuses on the related articles of the research on the risk of equity-based crowdfunding at home and abroad,hoping to gain some useful clues,in which data studies,normative analysis,and case analysis method are adopted.According to the public information,the concept of equity-based crowd funding,the business process as well as the investment and financing effect of jingdong crowdfunding platform are analyzed in detail.It also puts forward some pertinent suggestions on the existing risks which are analyzed objectively.Such as limit excess financing to establish valuation system to control the risk of financing,create new exit mechanism and carry out investor education to reduce the risk of investment,and raise the threshold of entry for funds to control the risk of the platform.At last,the following conclusions are drawn: Firstly,the polarization of the equity-based crowdfunding industry in China is emerging,thus small platforms need to analyze their own constraints and make themselves bigger and stronger;Secondly,it requires the combination of the investment,the financing and the platform to prevent the risk of equity-based crowdfunding industry;Thirdly,with the gradual improvement of the laws and regulations of the industry,the development of equity-based crowdfunding industry is bound to usher in another brilliant spring on the basis of solving its own problems.