A Study On Equity-based Crowdfunding Financing Of Small&Medium-sized Enterprises

Small and medium-sized enterprises have developed rapidly and contributed a great deal to the growth of the national economy since its reform and opening-up,vigorously promoting the economic system reform of China.They have become important force to promote the reform of China's economic system relying on their flexible operation mechanism and market strain capacity.Especially in the current,they are playing an irreplaceable role in ensuring the moderate growth of national economy,improving people's livelihood,optimizing the economic structure and promoting innovation.However,the growing small and medium-sized enterprises are faced with financing difficulties.From their financing practices,endogenous financing and exogenous financing are the two channels while it is difficult to meet their demand of development with their own funds coming from operational activities for small and medium-sized enterprises,they often search for external financing.On the one hand,under the background of high development of Internet finance,equity crowdfunding provides a new channel for the enterprises searching for exogenous financing.On the other hand,the new tertiary board market is also constantly developing in recent years.combined with the new tertiary board market,equity crowdfunding can lower the entry barriers for new tertiary board investors and bring more vitality of investment.New tertiary board market will also provide effective exit channel for all investors and further improve the exit mechanism of equity crowdfunding.This paper tease out the concept of equity crowdfunding and the small and medium-sized enterprise financing theory.And then,taking the equity crowdfunding of Hailong Nuclear Technology as an example,we analyze the financing difficulties that small and medium-sized enterprises are facing,financing performance as well as the practice process of Internet finance.Through the contrast of various financial indicators before and after the financing,financing costs,financing risk and etc,we analyze the differences between equity crowdfunding of Hailong Nuclear Technology and other financing channels and the results suggest that new tertiary board equity crowdfunding has significant advantages than other financing,which can effectively solve the problem of financing difficulties of small and medium-sized enterprises.It deepens the traditional financing,promotes the innovation of the financing mode and the abundance of the investment opportunity and is a kind of financing model worthy being popularized.Meanwhile,based on Internet,equity crowdfunding also has risks,it is necessary to establish a sound legal system to protect of the rights of investors.It can be expected that equity crowdfunding will become one of the important options for small and medium-sized enterprises because of its advantages.