The Study On China's Legal Risk Prevention Of Equity Crowd Funding

Equity crowd-funding are causing greater attention of entrepreneurs and investors as Innovation and entrepreneurship develop vigorously.In 2015,the government work report covered the pilot projects of equity crowd-funding,which officially kicked off the booming of equity crowd-funding.With the special rectification of Internet finance,equity crowd-funding financing has been on the list of regulation.At the same time,“crowd-funding of shares” was formally identified as “Internet non-public equity financing”.Due to the complicated status quo of the Internet equity financing industry,the regulation of the industry is still unclear or even vacant for a long time.Therefore,the platform will encounter various risks during the operation of the platform such as causing losses to all participating parties and affecting the stability of the financial order,thereby hindering the development of equity crowd-funding in our country.The rules set forth by the platforms have various loopholes,making the financing of equity crowd-funding full of various risks.Therefore,this paper intends to analyze the risk faced by all the participants in the financing process by combining the development environment and operation mechanism of crowd-funding in our country.From the perspectives of all parties,this paper studies what strategies should be adopted to prevent risks and promote healthy development of crowd-funding.This paper mainly adopts the methods of normative analysis,comparative analysis and empirical research to analyze the current status of equity crowd-funding operation in China,so as to summarize the potentially legal risks during the development.The paper will aim to put forward the precautionary measures for the crowd-funding of our country by comparing with foreign countries.This article is divided into four parts except introduction and conclusion: The first part is the general situation of China's equity crowd-funding.The concept,characteristic,system value of the crowd-funding of equity,operation mode of the equity crowd-funding in our country as well as legal policy and so on are expounded in this part.The second part is the legal risk analysis of the crowd-funding of equity faced by financiers,crowd-funding platforms and investors in our country.The third part is the empirical analysis of the legal risk prevention of foreign crowd-funding including the United States,Britain,Italy and Germany from aspects of the current situation and risk prevention experience of equity crowd-funding.The fourth part is the study of risk prevention of equity crowd-funding in our country,the focus of this article,which corresponds to the second part of this article.This part proposes the preventive measures for project financiers,platforms and investors respectively.For financiers,the measures include the protection of intellectual property rights,the protection of initiator's privacy,and regulatory.For the platform,Measures to improve legalization of the platform,funds of third-party inspector and protection of investors and financiers' information are included.For investors,the measures contained promoting the standards of qualified investors,protection of investors,exit mechanism,prevention of investment fraud and the system of information disclosure.As the main originality of the paper,the fourth part puts forward a number of exit systems for investors to solve the serious phenomenon called "exit difficulty" in current crowd-funding.