Case Study On Equity Financing Effect Of A Internet Education Company

With the increasing industrial upgrading caused by the Internet,the limitations of the traditional industry are gradually expanding,facing the pressure of increasing labor costs and declining customer experience.The emergence of the Internet has ushered in an opportunity for the vigorous development of the education industry.The formation of Internet education not only breaks the limitation of time and space,but also saves costs,expands the scope of education,meets individualized needs,and is favored by more users.Internet education companies have therefore ushered in a good opportunity for development,not only in terms of policy to obtain state support,but also as a high-tech enterprise to enjoy national tax incentives.In addition,the Internet education market has broad prospects.According to the forecast of Analysys Consulting,the transaction scale of China's Internet education market will reach more than 400 billion yuan in 2020.Based on this,Internet education companies have sprung up in China,but there are not many companies that are truly profitable and continue to operate.At present,most Internet education companies face difficulties in operating difficulties,development difficulties,and financing difficulties.By collecting relevant information and literature,under the background of educational informationization,taking A Internet Education Company as the research object,this paper describes its equity financing mode,process and results from the perspective of equity financing by using methods of theoretical analysis,case study,qualitative and quantitative research.Then it introduces a number of enterprises for horizontal comparison,and comprehensively analyses the motivation,particularity and effect of equity financing in case enterprises.Based on the corresponding research conclusions of financial indicators and non-financial indicators,this paper draws the experience and shortcomings of equity financing of case enterprises,and puts forward relevant suggestions for the shortcomings,which lays a solid foundation for the equity financing effect and future financing direction of A Internet Education Company.Based on the Internet Education industry,this paper hopes that the suggestions can not only help A company achieve the strategic goal of collectivization and improve the financing effect of enterprises,but also provide inspiration and reference for equity financing in the domestic Internet Education industry.