Research On Financing Modes Problems Of Internet Corporates In China

In recent years, the Internet corporates has been developing rapidly, especially, with the “Internet +” concept put forward,it increases a Cardiotonic to the development of Internet corporates. As a new industry, the characteristics of Internet corporates’ own development constraints make the financing models of Internet companies different from other industries. On one hand, since the Internet set up, it is only for a short time. Its characteristics such as, the main assets made of light the asset, lack of credit history, So that Internet companies cann’t get money through bank credit and other traditional financing model, thus narrowing Internet corporates financing channels. On the other hand, Internet companies is an ongoing “burning money” process from start-up to maturity during the life cycle, which requires a steady stream of financial support, and a high failure rate of Internet corporates, but once one Internet corporate successes, it will show an explosive growth. For one thing, the high failure rate makes most investors escape away, For another thing, once one Internet corporate successes, the investors acquire huge profits from the Internet corporate. Therefore, Where Internet corporates’ financing comes ? How to support the continued support of its steady stream of “burning money”? The writing intention of this paper is to find out ways for Internet corporates’ financing so that the Internet corporates can get financing smoothly.In the course of the study, the author uses literature and comparative research methods for the study of Internet corporates’ financing models. The paper consists of four parts: In the first chapter, the author introduces the backgrounds, significances, literature reviews, research methods, innovations and shortcomings. In the second chapter, at first, the author defines the concepts of Internet corporates and financing models studied in this paper. Then, the author describes the features between the traditional enterprises’ financing modes and Chinese Internet corporates’ financing models. In the third chapter the author focuses on the Chinese Internet corporates’ the usual financing five modes in practice, including private equity financing model, three new board financing model, crowdfunding financing model, preferred stock financing model and VIE structure financing model. At the same time, the author analyzes the backgrounds、status quo、 the advantages and the disadvantages Internet corporates using each financing model. Finanlly, the application conditions of the five kinds of financing models were compared. In the last chapter, firstly, the author analyzes the basic principles Internet corporates need to follow when choosing financing modes from four aspects. Then, the author gives some ideas when the Internet corporates chooses financing modes. Finally, the author gives specific policy recommendations the Internet corporates choosing financing modes so that make Internet corporates can obtain financing more smoothly.The Innovations of this paper is that t the author analyzes the basic principles Internet corporates need to follow when choosing financing modes from four aspects and gives some ideas when the Internet corporates chooses financing modes.Also, due to the investment threshold of the 500 million limit for the three new board listed financing models, it reduced the financing efficiency of the three new board listed financing models. In order to update the three board to provide better service for Internet corporate, the author proposess "Equity crowdfunding + New three board " financing model. The financing model will be a good model for financing public integration and financing model together with the new three board, it can play a " 1 + 1> 2 " effect. The shortcomings of this paper are as follows: The study for Internet corporates’ financing modes is a new field of study, Domestic and foreign scholars have few studies on Internet corporates’ financing models and comprehensive literature studies of the Internet industry financing models are also more less. Because of the author’s own capabilities and limitations of professionalism, all financing models Internet corporates adopted can not be studied comprehensively, ideas and policy recommendations put forward are not mature.