Research On The Risks Of Equity-based Crowdfunding Platform

In March 2018,the China Securities Regulatory Commission issued the legislative work plan for 2018,which specifically pointed out the need to formulate the "Measures for the Management of Equity-based Crowdfunding Pilot".As a new type of Internet financial model,equity-based crowdfunding not only has the financing function of traditional investment banks,but also solves the financing problems for various small and medium-sized innovative start-ups.It also enriches the investment channels for investors,greatly promotes the development of innovative start-ups and becomes an important part of multi-level capital market in China.However,in our country,the equity-based crowdfunding is still in the staggering stage,the specialized laws have not been issued,the regulatory rules have not been implemented,and the risk is hard to predict.Therefore,it is of great practical significance to study the risk of the equity-based crowdfunding platform.Based on the relevant knowledge of finance,law and management,through theoretical analysis and case study of Renrentou equity-based crowdfunding platform,this paper explores the risks and loopholes existing in the development of equity-based crowdfunding platform business in China,and holds that the risks of equity-based crowdfunding platform in China can be triggered by external factors and internal factors.From the macro level,the risks faced by equity-based crowdfunding platform mainly include legal policy risks and market risks;from the micro level,the risks faced by equity-based crowdfunding platform mainly include operating risks,credit risks,moral risks and business risks.The seven-tier project auditing mechanism,the third-party trusteeship system of funds,the project allocation in batches and the evaluation system are used in Renrentou platform to avoid the risks above to the greatest extent,protect the interests of investors better,and have great reference significance for the development of the industry.Based on the theoretical analysis of the risk formation mechanism of equity-based crowdfunding platform and the measures taken by Renrentou platform to prevent the related risks,this paper holds that the risk prevention of equity-based crowdfunding platform not only requires the platform to provide specialized skills and professional qualities of practitioners,improve the business process of equity-based crowdfunding,strengthen the information disclosure system,which improve the platform itself,but also needs legislative regulators to improve the legislative system,establish regulatory rules and establish a sound credit system.