On Legal Protection Of Equity Crowdfunding Investors In China

Under the current wave of vigorously promoting “mass entrepreneurship,innovation”and accelerating the development of new economy,equity financing has been rapidly developed as a new financing model born under the “Internet + Finance” model.Equity crowdfunding relies on Internet technology to improve the financing efficiency for a large number of small and medium-sized enterprises and start-ups,solve the problem of financing difficulties,and stimulate the development vitality of small and medium-sized enterprises and start-up enterprises to a certain extent.Compared with traditional financing models such as bank loans and P2 P,equity crowdfunding has a series of advantages such as low threshold,low cost,low restriction and high efficiency.It is also because of its characteristics of “open,small,and popular”.A large number of investors have been attracted.However,the impact of equity crowdfunding in China's rapid development is a "double-edged sword",which is conducive to promoting financial innovation on the one hand,but on the other hand,due to the relatively backward crowdfunding financial infrastructure construction in China,it has just started,The immature equity crowdfunding cannot be effectively regulated,and the relevant laws and regulations also show obvious lag.Under the existing legal framework,it cannot be effectively supervised,and a series of problems arising in the process of equity crowdfunding cannot be obtained.Effectively solved.The legal protection of equity crowdfunding investors is a core issue in the process of equity crowdfunding.The legal protection of equity crowdfunding investors is not only about the vital interests of each investor,but also the healthy development of the entire financial market and financial management.The normal operation of the order.Most of the investors in equity crowdfunding are the general public,with less financial knowledge reserves,poor ability to identify risks,and low risk-taking ability.Under the current circumstances,the development of China's equity crowdfunding financing model has just started,and it is still exploring.Among them,equity crowdfunding investors lack relevant experience and are prone to irrational investment and suffer losses.In addition,some small and medium-sized enterprises and start-ups as equity crowdfunding companies have certain operational risks.Therefore,if they cannot form an effective norm for the equity crowdfunding process,they will also make equity crowdfunding investors to a large extent.Suffer damage.Establishing a scientific and sound legal system for equity crowdfunding investor protection is not only an urgent need to protect investor rights,but also a necessary condition for the healthy development of equity crowdfunding financing model.This paper uses literature research,case analysis and comparative analysis to focus on the legal protection of equity crowdfunding investors,starting from the generation,development and operation mode of equity crowdfunding,and on equity crowdfunding financiers and equity crowdfunding platforms.The legal relationship between the three parties of equity crowdfunding investors is analyzed,the rights and obligations of each subject are clarified,the sources of risk faced by equity crowdfunding investors in China and the deficiencies in legal protection are clarified,and the extraterritorial equity crowdfunding investment is used.We will protect the system of equity crowdfunding investors in China,so as to ensure the healthy development of China's equity crowdfunding financing model in the future.This article consists of four parts,each part main content:The first part arrangement the origin and development of equity crowdfunding,clarifies the concept and operation mode related to equity crowdfunding and analyzes and studies the legal relationship among the entities in the process of equity crowdfunding.The second part analyzes the various risks faced by equity crowdfunding investors from the risk sources of equity crowdfunding financiers,equity crowdfunding platform and equity crowdfunding investors,and further points out the current situation of equity crowdfunding in China.There are some shortcomings in the legal protection of investors.In the third part,based on the status quo of the rights protection of equity crowdfunding investors in China,on the basis of localization development,the United States,the United Kingdom,and Germany are selected as representatives to study the legal protection system of equity crowdfunding investors in different modes outside the country.In the development process of equity crowdfunding financing mode,the specific problems of investor legal protection are extracted,and the advanced legislation and supervision experience outside thedomain are extracted,which provides a reference for the legal protection of equity crowdfunding investors in China.The forth part combines the status quo of legal protection of equity crowdfunding investors in China,and points out the problems in the legal protection of equity crowdfunding investors in China,how to strengthen the supervision of equity crowdfunding financiers and improve the management system of equity crowdfunding platform.And improve the equity crowdfunding investor protection mechanism from three perspectives to put forward specific countermeasures and suggestions,so as to build a comprehensive and three-dimensional legal protection system for China's equity crowdfunding investors,and effectively protect the legitimate rights and interests of investors,and further promote The healthy development of equity crowdfunding financing model.