Research On The Performance Of Equity Crowdfunding And Its Influencing Factors

Small and micro enterprises play an important role in promoting economic growth and increasing employment,but financing difficulty has become a bottleneck restricting their sustainable development.Recently,many entrepreneurs have started to rely on the way called ?equity crowdfunding? to directly seek financial help from the general public.Equity crowdfunding has become an alternative way of financing for small and micro enterprises.Therefore,this paper combines theoretical analysis and empirical research to explore the performance and influence factors of equity crowdfunding in alleviating the financing difficulty of small and micro enterprises,so as to provide some suggestions for the development of equity crowdfunding.Firstly,this paper demonstrates the effectiveness of equity crowdfunding in providing financing support for small and micro enterprises from a theoretical perspective.Secondly,based on the development status of equity crowdfunding,this paper further analyzes the influence of the investment threshold,the investment of led-investor and the wisdom of the crowd using the multiple regression model.The results show that equity crowdfunding is an effective channel to make up for the funding gap of small and micro enterprises in their early stage of business.However,its development faces some problems.The empirical results show that the restriction of the number of shareholders limits the development of equity crowdfunding.The investment of led-investor is not a positive signal.On the contrary,it crowds out the investment of the public investors.The attention of the financing project can be interpreted as an effective and positive signal and therefore strongly impact the performance of financing.According to the theoretical analysis and empirical research results,this paper puts forward policy suggestions for the development of equity crowdfunding,so as to alleviate the financing difficulty of small and micro enterprises,and promote the economic development of China.