Research On Legal Issues Of Equity Crowdfunding

Small and medium-sized enterprises often encounter the problem of shortage of funds in the early stage of development,however,due to the higher risk of bankruptcy,the traditional way of financing can only provide very limited funds,some of the development potential of the company because of inadequate financing on the verge of bankruptcy,in recent years,a new way of financing the Internet boom spawned the ownership all the chips.Raise public equity provides a new way of financing for start-ups,not only can integrate social idle funds to maximize the utilization of social resources,but also in the financing and promote the company and products,enhance corporate visibility.Because of the public to raise equity is "open,small,mass",and relates to the transfer of shares,securities and other aspects of the issue,the legal nature of ownership is to raise public issuance of securities shall belong to the jurisdiction of the securities law,such as the United States in the securities law in the provisions of the "investment contract" as a fallback,Japan,England etc.also introduced the general "collective investment plan".But as a new financing model,the existing securities laws and regulations in many countries and has not made specific provisions,which leads to the public to raise equity interests of the parties can not be fully protected by law.With the development of the public to raise equity in recent years,various countries have realized the importance of standardized equity raising,norm system about the public equity raise gradually,the U.S.government in 2012 promulgated the "Jobs Oxley Act(Jumpstart our business startups,also known as the"Enterprise Financing Act ")is a typical one of them.The Jobs act not only through the creation of a public offering to raise public recognition of the equity ownership of the public to raise the legitimacy of the status quo,but also specifically provides qualified investors and the conditions of the financing,the obligation to raise public equity platform.The enactment of the Jobs act is an important event in the U.S.capital market,which relaxes the financing channels,improve the financing environment,butalso for many small investors to create more opportunities for venture capital companies.However,the current law of our country also failed to make a clear position on the public to raise equity,the attitude of regulators is unclear,because of this,the public to raise equity financing platform and provide intermediary services is also faced with the risk of alleged illegal fund-raising,but also because investors cannot be protected by the law and not dare to invest.The public to raise equity development is facing a huge challenge.Therefore,China should follow the trend of the times,the legislative experience from other countries and combined with China’s national conditions,clear public equity raise small raised nature and for the creation of the exemption system,reasonable adjustment of regulations on the number of investors,regulate public equity raise each subject’s rights and obligations,will raise public equity securities laws and regulations as soon as possible in the system of the law.