Research On The Risk And Prevention Strategy Of Non-public Equity Financing Platform Of The Internet

As a new financing model,the non-public equity financing of the Internet is generated under the rapid development of the Internet and an inclusive financial environment.It injects new energy into the economic development,stimulates the vitality and enthusiasm of various innovation groups,and further creates the atmosphere of mass entrepreneur and innovation.Meanwhile,it provides investors and financiers with an efficient and low-cost way to facilitate investment and financing,promotes the development of an innovative and efficient economy.In addition,it complements the shortfall of traditional capital markets and helps the construction of multilevel capital market system.However,the seemingly more profitable internet non-public equity financing has led to the frequent switchovers,closures,outings and fraud as a result of various deficiencies in the economic environment,laws and regulations,operation modes and risk control.All these seriously damage to the interests of investors,restricting the development of the entire industry.This paper studies the legal and policy environment,market size,operation and management mode,profitability and other current status of the internet non-public equity financing platform from the perspective of non-public equity financing platform.Based on the traditional risk management theory and the failed projects financing on platform,it analyzes and summarizes the six major risks in the business of the platform: legal risk,audit risk,information disclosure risk,business risk,post-investment management risk and technical risk.In addition,this paper selects the platform of “Renrentou” as the representative,analyzes method of how the internet non-public equity financing platform identifies the risks in actual operation,and makes the risk analysis and assessment for “Renrentou” based on the platform's specific business and failure projects,and then,make a impact summery of different kinds of risks.The analysis shows that under the current industry environment,the mutual influence of the five risks has brought tremendous damage to the operation of the platform and the development of the industry,seriously damaging the interests of investors and affecting the image of the platform.Therefore,the platform needs to formulate corresponding risk prevention strategies,controlling risks within a reasonable range,and protecting the legitimate rights and interests of both investors and financiers,in order to give full play to the advantages of non-public equity financing of the internet.In view of the six major risks of the platform,this paper puts forward the following corresponding risk prevention suggestions: strictly abide by laws and regulations,strengthen auditing efforts,perfect the information disclosure system,enrich the revenue sources of the platform,improve the post-investment management of the project by the platform and raise the internet technology.