Analysis Of Factors Affecting The Equity Crowdfunding Platform

It is difficult and expensive for small and micro enterprises to raise funds,which has become a worldwide problem.Under the background of the booming Internet finance,the equity crowdfunding model has emerged rapidly in China.Equity crowdfunding is regarded as a new type of financing model with three distinct characteristics: open,small and public.It is beneficial to complement the deficiency of the traditional financing channel and is well satisfied with the financing needs of small and medium-sized enterprises.It effectively broadens the financing channels for small and medium-sized enterprises,facilitates the formation of capital,supports innovation and entrepreneurship,and is more conducive to the construction of a multi-level capital market system.Firstly,this paper makes a comprehensive description and summary of the development status of China's equity crowdfunding platform,Which concluded that the number of platforms for equity-based crowdfunding in China and the total amount of financing for the project have shown a steady development,followed by a sharp decline,and the number of successful financing projects is small.Moreover,the domestic scholars' research on equity crowdfunding mostly stays at the level of qualitative analysis,and the lack of empirical research means that the research in this paper is necessary.Secondly,the author has combed the relevant literatures on the factors affecting the success of equity crowdfunding in China and abroad,and summarized the factors affecting the success of the financing platform called zhongtou8.It includes the number of project interviews,project status,the quata of financing,project location,maximum transfer shares and the ratio of Leading investor.In addition,based on the research literature of predecessors,most of the platforms are not open to the information of the lead investors.Therefore,in the past,scholars usually treated the indicator as a dummy variable and included it in the regression equation for analysis.However,this paper is extracted by Python software.Take the specific value of the lead ratio and quantify it into the regression equation to explore its specific impact on the crowdfunding platform.Then,the author extracted all the quantifiable data of 123 crowdfunding projects from the zhongtou8 website as a sample,and combined the signal theory and the herd theory to divide the above six indicators into three dimensions,including social capital project characteristics and uncertainty.Followed by the construction of the model,along with the use of binary logistic regression analysis to test the indicators that affect the success of financing.It is concluded that social capital and uncertainty significantly affect The success of crowdfunding financing,while the proj ect characteristics does not significantly affect the success of crowdfunding financing.Finally,based on theoretical analysis and empirical analysis,suggestions for successful financing of crowdfunding project parties are proposed.