The Research On The Risk Control System Of Crowdfunding

Considering that China encourages the development of finance and stimulates people to startup their own business,equity-based crowdfunding has a low market entry barrier,and is easy to get financed and also popular in the Internet finance industry.As a new financing channel for small and medium-size companies,and as an emerging investment method,the practice of equity-based crowdfunding runs far ahead of the setting of its theoretical system.In the view that China still stands at an exploratory stage,crowdfunding is nonstandard in some way,and there exist multiple risks during the process of operation,it is necessary to put up with a standard system for equity-based crowdfunding risk prevention.This paper,at first,concludes the operating modes of domestic and overseas equity-based crowdfunding,initially grasps the concrete process of its operation,and the legal line generating from the lack of related rules of law,which may legitimatize equity-based funding.Its risks can be learned here from the perspective of macro level.In the meanwhile,this paper bases on the “JOBS ACT” of America and private equity-based crowdfunding control legislation(trial implementation),accords with specific platform cases,and analyses the risk controlling system from the perspective of participators.Firstly,we put up with the system for investors,based on their risk identification capability,their bearing capability and total amount of subscription.Secondly,we put up another system for financiers,including the business plan for the project,the due diligence investigation,the limitation for the financing amount,the exit mechanism and the financing modes.Last but not least,we put forward a third risk prevention system for equity-based crowdfunding platform,with the consideration of its operating style and self-discipline standard,that is,risk education,information disclosure,property security,confidentiality agreement and self-discipline rules for employees.There is certain reference significance for this paper to optimize the situation that the practice of equity-based funding runs far ahead of its theory,to get analytical outcomes from cases to systems,and to come up with a more standard risk prevention institution for the healthy development of equity-based crowdfunding.