Research On The Risk Control Of Online Non-public Equity Financing

Driven by the concept of “Internet Plus”,Internet finance has developed rapidly in China,and its scale has grown rapidly.Products have been replaced rapidly,and the fields and influence involved are also growing.Among them,the online non-public equity financing,as one of the emerging Internet financial models,is positioned in start-up,small and micro enterprises.It supports the realization of “mass entrepreneurship and innovation” in China.In solving the financing difficulties of SMEs,enriching the investment channels of residents,improving multi-level capital markets,rationalizing the flow of social capital,and efficient allocation,it plays an important role.The development of non-public equity financing of the Internet requires good development environment and a perfect supervision system.It is necessary to pay attention to risk monitoring and prevention while encouraging financial innovation.The non-public equity financing of the Internet has a significant advantage as a new financing model.However,due to the complexity of its financing process,there are many hidden risks in each link.In the absence of effective risk control,the Internet non-public equity financing will expose many problems,such as infringing on the interests of investors,even restricting the development of the entire industry and leading to the instability of China's financial system.Therefore,it is particularly important to effectively control all aspects of the Internet's non-public equity financing.This paper focuses on the risk control of online non-public equity financing.Firstly,this paper introduced the concept and operation mode of the Internet non-public equity financing.This paper introduced the concept and operation mode of the Internet non-public equity financing,expressed the characteristics of online non-public equity financing by comparing with other equity financing methods,analyzed the risk management framework of online non-public equity financing and industry development present situation.Then this paper taken the JM project of “ZhongTouBang” platform as the research object,combines the specific operation process of the project,and analyzes the defects on the risk control faced by the entry phase,financing phase,post-investment management phase,exit phase,and prevention deficiencies.Finally,under the framework of the overall operation of the non-public equity financing of the Internet,corresponding countermeasures and suggestions for risk prevention and improvement are put forward according to the analysis of the existing problems of JM project risk control.Through the elaboration and analysis of the JM project,the article enriches the case studies of the online non-public equity financing,proposes suggestions for improving the risk control of the online non-public equity financing,and provides certain experience and inspiration for the healthy and self-disciplined development of the industry.It also provides theoretical references for the revision and introduction of relevant national laws,regulations and management systems.Perfect risk control will help guide the industry out of the downturn,promote the healthy and rapid development of the online non-public equity financing,provide better financing for SMEs,and play a greater social value.