Research On The Risk And Prevention Strategy Of China’s Non-public Equity Financing Of The Internet

Represented by the Internet,the rapidly developing modern information technology has had a disruptive impact on many areas,such as commodity retailing,book,music,etc.Besides,the Internet payment,big data,cloud computing,Internet equity financing,p2 p and other kinds of Internet finance are in the ascendant,their development will subversively influence the existing finance mode with no doubt.The Internet non-public equity financing is different from the indirect financing of commercial banks,and also different from the traditional direct financing of the capital market.It connects the investors with the owners of star-ups,small and micro enterprises,etc.Through the released enterprises information on Internet platform,the investors can directly decide whether to invest in these enterprises.After investment,they can hold the enterprises’ equity share indirectly and also participate in the equity investment income.In the Internet non-public equity financing mode,the division and specialization of modern financial industry has been greatly weakened.The advent of Internet platform and related technology software significantly reduces the threshold for equity investment,and the common salariats and entrepreneurs all can have equity investment through Internet platform.The complex transactions such as enterprise valuation,risk control,term matching are also simplified by the Internet.Financial market participants becomes more popular,the income of equity investment will be more accessible to ordinary people,and thus the equity investment will move from the elite to the masses.However,during the development of non-public equity financing,there still exists many risks,and we should never neglect them.This paper studies the Internet non-public equity financing,firstly it introduces the concept and characteristics of non-public equity financing,and clarifies its relationship with equity-based crowd-funding.Through the comparative analysis of the characteristics of Internet non-public equity financing,it points out that the non-public equity financing is a new developing form of private equity investment in the Internet age.Basing on flowchart analyzing method,this paper identifies the financing risks,and by analyzing historical data of private equity funds,it also points out the risks of private equity investment.Then the paper classifies the risks,and analyzes them from three aspects: investors,the Internet platform and financiers.Finally,according to the overall framework of Internet non-public equity financing,the paper gives risk prevention suggestions from the perspective of investors,the Internet platform and financiers respectively.