Risk Control Of Equity-based Crowdfunding Platform

Equity-based crowdfunding is a new mode of Internet financial with the characteristics of open,small,public.The emergence of equity-based crowdfunding not only solves the problem of lack of financing channels for private capital,but also provides a new solution for small and micro business's shortage of funds.Although start lately,equity-based crowdfunding develops rapidly in China.In recent years,the equity-based crowdfunding platforms sprung up all over the country,however,there are many risks in the operation of the platform.This paper selects the platform A,one in the first teams of equity-based crowdfunding in our country,as an example.Its business scale and development speed are all in the forefront of the industry,the risks in its operation are typical.This paper analyses the risk control methods and problems of platform A,then put forward appropriate risk control strategies according to the characteristics of our country.Platform A uses the mode of lead investor and eo-investor,establishes a four-step due diligence system,builds a multi-tier fund structure and builds the Internet equity investment and financing ecosystem.These risk control measures,which reduces part of risks of platform A,have a certain reference value for other equity-based crowdfunding.However,there are some problems such as unscientific project auditing,unreasonable investor access,imperfect information disclosure,inadequate funds supervision and so on.Through the optimization of risk control process,this paper puts forward suggestions for establishing project risk assessment system,dividing investor risk level,improving information disclosure system,introducing third-party fund trusteeship institution,and establishing risk compensation mechanism.