Application Research Of Equity Crowdfunding Financing In China's Small And Medium Enterprises

Small and medium-sized enterprises are an important part of China's economic market,the main economic pillar and tax source.With the number of enterprises increasing year by year,this group has also become the focus of experts.There are many small and medium-sized enterprises whose life cycle is very short,and they will disappear only in a short time in the market.The main reason for this phenomenon is that there is a large financing gap.For small and medium-sized enterprises with limited economic strength,imperfect management system and little social influence,it is difficult to obtain capital with the help of traditional financing models,such as bank borrowing,issuing bonds,commercial credit,etc Financial support,because the traditional financing mode has the problems of high financing cost,many restrictions,high financing risk and decentralized control.With the rise of the Internet era,Internet finance has come into our lives,and a new financing method,equity crowdfunding,has emerged,which aims to help small and medium-sized enterprises to solve the financing difficulties.Through literature review,this paper combs the financing theories and concepts of small and medium-sized enterprises,takes the case of equity crowdfunding of L company in the fifth creation crowdfunding platform as the research object,analyzes the motivation of equity crowdfunding of L company,introduces the detailed information and specific financing scheme of equity crowdfunding of L company.This paper analyzes the effectiveness of L company's equity crowdfunding from four aspects,including the analysis of financial data,the reduction of enterprise financing costs,the acceleration of enterprise financing efficiency and a wide range of capital sources.The research results show that equity crowdfunding is very effective for L company's financing.It not only helps enterprises to raise funds needed for production and operation,reduce financing costs,improve financing efficiency,but also improves the company's brand awareness Name degree.Finally,this paper analyzes the reasons for the success of L company's equity crowdfunding and the problems in the financing process and post investment management stage,summarizes the case enlightenment,and puts forward the corresponding countermeasures and suggestions for other small and medium-sized enterprises to learn from,help more small and medium-sized enterprises to solve the financing difficulties and the financing difficulties,so as to achieve healthy and stable long-term development of small and medium-sized enterprises in China,and create more economic benefits.