Study On The Business Model Of Equity Crowdfunding Platforms

As a new mode of Internet finance,equity crowdfunding can provide a new financing channel and financial support for innovative start-ups,and effectively alleviate the financing difficulties that are common to medium small and micro-sized enterprises in China.The equity crowdfunding industry of China has sprouted from 2011,entering a two-year explosive growth phase in 2014 and continuing to a depth-shuffling period in 2016 and 2017.As the overall supervision of the equity crowdfunding industry in our country has become tighter,the industry has basically brought an end to the barbarous growth trend and standardized development has become the keynote of industry development.Although the positioning of "open,small,public" in equity crowdfunding has lowered the investment threshold,so that more ordinary investors can participate,due to the lack of relevant professional skills and investment experience,most ordinary investors also make the investment risk greatly increase.Moreover,the uncertainty caused by the financing companies and projects is likely to allow investors to be worried and even afraid of investment.The issue of survival has always been a major issue that all equity crowdfunding platforms need to face and cope with.There are many aspects closely related to this issue,including the establishment and promulgation of related policies and institutional mechanisms,the positioning and development scale of the industry,and the design of the platform's own positioning,functions and modes.Among them,the choice and design of business model of equity crowdfunding platforms,not only affects their own operation and development,but also affect the investors and fund-raisers to judge the investment of equity crowdfunding and the choice of platforms.Therefore,this is also the key issue affecting the sustainable and healthy development of the entire industry.This paper chooses to systematically research and analyze this key issue.First of all,this paper collates and analyzes the relevant references at home and abroad,mainly including the concept,meaning and development mode of equity crowdfunding.Secondly,this paper summarizes the attractive mechanism of equity crowdfunding investors,and divides the business model of equity crowdfunding platform into operating mode and profit-making mode,and compares and analyzes the different types of the two modes.Thirdly,based on the investor attraction mechanism,this paper uses the data of successful financing projects of the two platforms of JD Dongjia and Renrentou in our country,and uses qualitative and quantitative analysis to empirically examine which operating mode is more attractive to investors and concludes with the conclusion that the syndicate mode which has the lead investors is more attractive to investors.After that,this paper chooses the leading platform of equity crowdfunding in our country JD Dongjia as the case study,including the analysis of its development course and status,as well as the selection and design of its business model,collating and analyzing the data published by this platform,and comparative analysis of the data with other major platforms in China,and finally analyzing the financing performance and investment performance of its business model.Finally,this paper summarizes the conclusions drawn from the previous normative analysis methods such as theoretical analysis,empirical analysis and case analysis,and puts forward some suggestions for the selection and design of the business model of the equity crowdfunding platforms in our country: First,it is recommended that the equity crowdfunding platforms adopt a business model dominated by the syndicate mode and supplemented by other modes,including a rigorous examination of the qualification of the lead investors and the clarification of their rights and obligations,the establishment and improvement of the investors guarantee mechanism,and the establishment of an efficient operation mode.Second,it is suggested that the platforms for equity crowdfunding should choose a profit mode that is beneficial to various parties,including actively adopting the profit-taking mode of receiving equity,enriching platform functions,building an entrepreneurial ecosystem,and exploring new ways to exit.