Research On The Financing Constraint Factors Of Internet Crowdfunding Projects

With the development of Internet Financial, Crowdfunding model is a tool that is emerging as an alternative to traditional forms of financing such as bank loans, business angels, bootstrapping or venture capital investment, helping entrepreneurs to raise funds to launch their ideas. On the one hand, Crowdfunding model can promote financial innovation. On the other hand, it can solve the financing problems of small and micro enterprises. Therefore, in recent years Crowdfunding model has been widely popular in domestic and overseas. However, whether in developed countries or in developing countries, the success rates of Crowdfunding projects are relatively lower, the average financing success rate in about 50%, which is seriously restricting the development of Crowdfunding model.Therefore, firstly as an exploratory empirical study, the one of the goals of this paper is to research on the actuality of the Crowdfunding industry in China by data analysis, including the present situation of Crowdfunding platforms, the present situation of Crowdfunding projects, the present situation of Crowdfunding amount et al. And then have a deeper understanding of the two difficulties of the Crowdfunding industry. The first difficulty is lacking of professional management methods. The other difficulty is low Crowdfunding success rate.Then, in order to solve the above difficulties, this paper takes the three main items of Crowdfunding projects as study objects and establishes the utility functions for each item to construct the utility maximization model of Crowdfunding projects. Based on the model solution, this study concludes that theoretical constraint factors affecting the Crowdfunding projects include the Crowdfunding project goal, the number of funders, the project’s reward value and the investment grades.Finally, by collecting and analyzing the data of Qingju Crowdfunding Platform this paper makes an empirical research to test the reliability of theoretical constraint factors. The research results show that Total Goal, Reward Period and Reward Levels have the negative influence on the completion ratio. And the Browsers, Backers, Min-pledge and Investment Grades have the positive influence on the completion ratio. Through the regression analysis of the data, this paper further studies on how the constraint factors influence the completion ratio. The research results show that this constraint factors’influence on the completion ratio from big to small is Backers, Min-pledge, Total Goal, Investment Grades, Reward Period, Reward Levels and Browsers. And construct a complete supervision system including legal regulation, government regulation, self-regulation and supervision of the media to protect the development of Crowdfunding industry.In conclusion, through model identification, correlation test and regression analysis, this paper researches on the key constraint factors to the completion ratio in Crowdfunding projects. The analyses provide a somewhat clearer picture of the nature of Crowdfunding. According to the research results this paper puts forward corresponding strategies and financing recommendations to help improve the Crowdfunding projects success rate and Crowdfunding regulation levels.