Study On Ivestment Risk In Crowdfunding Project Based On PCA-BP Model

The explosive growth of the Internet finance,profoundly changed traditional financial business model since 2013,attracted widespread attention in our society.Crowdfunding as a model of ITFIN,giving the general public a chance to participate in the financial market directly,the number of crowdfunding project and crowdfunding platform is growing continuously.Although crowdfunding is growing fast,there are some risks for investors.As a newborn thing,uncertainty still reigns in the development of crowdfunding because there is a lot of uncertain factors such as fuzzy legal positioning,imperfect and lack of regulatory review mechanism,a lot of cr owdfunding platforms break the contract and the default of many crowdfunding projects damage the interests of investors.So to build an effective risk assessment model to make a scientific evaluation for crowdfunding project investment risk in crowdfunding project is necessary.Based on the relevant theoretical research on risk,we first introduced the method of risk identification,principles and procedures of risk identification,and then we use risk search tree method to identify the risk when investors participate in crowdfunding,and follow the principles of scientific,systematic and feasibility,and select 4 first level indicators and 15 secondary indicators.We constructed the investment risk evaluation system about crowdfunding projects.Then on the basis of the investment risk evaluation system about crowdfunding projects,we construct PCA-BP risk evaluation model for the evaluation of investment in crowdfunding project.We first introduce the theoretical basis of the principal component analysis and BP neural network,and then design BP neural network structure.We use questionnaire method to determine the risk index membership matrix,and then use the weighted average method to calculate the score of risk evaluation.We use principal component analysis method to analysis the original data and get the principal component,and put the principal component of the original data into BP neural network,and the neural network learning and training,then we complete the building of PCA-BP Risk evaluation Model by learning and training the neural network.Finally,we apply the PCA-BP model to investment risk evaluation of JiRui coffee crowdfunding projects.First,we introduce the JiRui crowdfunding project from the project sponsor,the project itself and the crowdfunding platform.Next,we use the method of the four chapters to process the sample data.Finally,we get the final output by puting data into neural network.We construct project investment risk evaluation system and PCA-BP risk evaluation model for quantitative analysis and the research results of this paper is a beneficial attempt to evaluate the risk of investment in crowdfunding project and provides a basis for the evaluation of the investment risk in crowdfunding.