Research On The Legal Issues Of Crowdfunding Financing Investor Rights Protection

As a new type of financing model under the "Internet +" era,crowdfunding has the characteristics of small amount,common benefit and wide audience.It can not only effectively expand investment channels and help startups and minimally invasive enterprises to solve financing difficulties and highly cost problems,but also optimize resource allocation reasonably in China’s capital market,gradually becoming the main force of the emerging financing market.Investors are the most important participants in crowdfunding financing model,so to protect their legitimate rights and interests can not only strengthen the confidence of investors in the market,attract more people to participate in the mobilization,but also stimulate vitality in capital market,promoting sound development of the entire industry.At present,the protection of equity interests of all crowdfunding investors in China is facing huge challenges.Because the speed of crowdfunding development and supervision system is not complete,the supervision is difficult to distinguish project information,and the financing rights and interests of the two sides is not complete,which bring about a huge risk in the market.And because the exit mechanism is not perfect and the project return period is too long,there will be no remedial measure once the project failed or investors regret to invest,so that many investors are still take a wait-an-see attitude.Investors are indispensable links in the steady development of the industry,but for the protection of investors exist serious deficiencies,the development of the industry encounters serious obstacles.It is a strict limitation of the long-term development of the industry,so we need to pay attention to the role of investors in the development of various industries,based on the perspective of investor protection to develop a specific system of protection from before to afterwards to build a well-off industry development path.This article is divided into four chapters,firstly,introducing of the basic concepts of financing,model and characteristics,followed by investors facing information asymmetry,fraud and exit difficult risk,highlighting that investors are in disadvantaged position,which lead to the concept of investor protection as well as its contents and significance.Secondly,it analyzes the problems existing in the protection of investors’ rights and interests in our country and explores the experience of protecting the rights and interests in foreign countries,aims to find out measures to protect the rights and interests of investors in China.Finally,the author puts forward some feasible solutions to the problems existing in protecting the rights and interests of investors in China,such as providing a fair and equitable investment environment for all investors through reasonable definition of the access system and perfecting the supervision system.Through clarifying information,disclosuring obligations,and establishing risk notification system,we can perfect the protection of the right to know for investors.