A Study On The Legal Issues Of Equity-based Crowd-funding

Equity-based crowd-funding is the start-up through the Internet platform to raise the project details,to potential investors to show,to attract investors to support the project,and investors can also be income.The State Council express views "to carry out the Equity-based crowd-funding pilot",the SFC has conveyed the "encourage industry development" "to encourage industry self-discipline" regulatory advice the regulatory advice,which are to convey to the public the state of the industry's development of positive signals.The concept of Equity-based crowd-funding is the Start-up enterprise will publish widely specific information of the project in the Internet public platform in order to attract potential investors in the investment interest,investors fancy project prospects and Expected to return to the project investment,investors by the proportion of investment to obtain the same proportion of the shares of the enterprise.In the Internet equity,there are the main body of the financier,investor and public platform.The financier creates all the projects on the Internet,and introduces the creative,Time and expected income and other specific information,a project to meet the needs of different investment stalls,different stalls have different expected returns.Investors are based on the public information platform published on the specific information reference,and then set the investment stalls in accordance with the project,in combination with their actual situation carefully selected and wait for the expected benefits,the responsibility of the collective platform is responsible for the audit,Display project information created by funders,and provide intermediary services for various support services.“Practice is more advanced than legislation” is the development of Equity-based crowd-funding in China.So in practice it caused a lot of legal issues.Illegal fund raising,illegal issuance of securities and intellectual property infringement are the main problems faced by financiers;the protection of the right to know,the withdrawal of the project and the legal status of investors are the main problems facing investors.In“Jumpstart Our Business Startups Act”,the main provisions of the micro-equity financing concessions,the mobilization of personnel within the platform restrictions and information disclosure requirements,"Private Equity Financing Management Approach(Trial)(draft)",mainly provides for the issuance of the platform access standards,the requirements of the financing and investors and the platform for the supervision and management requirements,"private equity fund supervision and management of the Interim Measures",provides for qualified investors,capital operation and fund raising of the requirements for the subsequent legal countermeasures to provide a basis for reference.From the point of view of the financing side,it is necessary to combine the provisions of the relevant laws and regulations so as to avoid touching the illegal fund-raising line,clarify the legal status of the non-public offering and pay more attention to the protection of intellectual property rights.To ensure the security of funds,System,standardize the platform to enter the standard and business scope and the establishment of credit mechanism countermeasures;from the investor point of view,we must gradually improve the risk tips and information disclosure system,set the investor cooling period and strengthen the investment risk education.