The Legal Regulation Of Lead Investors Of Equity-based Crowdfunding

There are many conflicts between equity-based crowdfunding and the current laws and regulations of our country,and it has not been legal.However,the Internet non-public equity financing is the transitional form in the nature of private equity,which provides local practical experience for the construction of equity-based crowdfunding in the real sense in the future.The popularity of the lead-and-follow investment mode of equity-based crowdfunding in China has promoted the process of crowdfunding,but also exposed potential risks.This paper mainly considers the legal regulation of lead investors from the following four parts.The first part states that the current situation of the equity-based crowdfunding and lead investment system.This part mainly introduces the necessity of lead investment system,as well as the practice and legislation in China.In the lead-and-follow investment mode,it is necessary for lead investors to play a significant role in promoting the success of equity-based crowdfunding financing through credit intermediary function,signaling theory and its professional advantages.But the current situation of the lead investment system in China is not optimistic.In legislation,there is a gap;In practice,the standards are different,the supervision is disordered,and the moral risks of lead investors are difficult to prevent.The second part states that the analysis of the legal status of lead investors.In the lead-and-follow investment mode,lead investors are in the core position of ties,subject to diverse legal relations,and have multiple properties.First,there are many kinds of legal relations between lead investors and follow investors,which not only form partnership,agent relationship,but also constitute the fiduciary relationship.At this time,lead investors have compound nature,but the main position is the general partner of the partnership,and shall be responsible for all partners.Second,lead investors and financing companies form the invest-and-finance relationship.As the shareholder representative of the limited partnership,lead investors perform the rights and obligations as the shareholder of financing companies on behalf of the limited partnership and follow investors.Third,lead investors and equity-based crowdfunding platforms constitute the relationship of supervision and being supervised.As the intermediary agency,the platforms share part of the regulatory responsibilities.As professional lead investors selected by the platforms,the qualification and the clauses of rights and obligations of lead investors are provided and supervised by platforms.Clarifyingthe legal status of lead investors in different legal relations is the basis of building a systematic and complete legal regulation system of lead investors.The third part states that moral risk control of lead investors.This part includes the causes,performance,consequences of the moral risks of lead investors and how to control the moral risks.Although lead investors can reduce the information asymmetry between financing companies and follow investors and solve the problem of adverse selection to some extent,the preference difference and information asymmetry between lead investors and follow investors will also lead to various types of moral risks,which damage the interests of follow investors.At present,the endogenous mechanism of the market is difficult to overcome the moral risks of lead investors caused by information failure,so the legal regulation system of lead investors with the fiduciary duty as the core needs to be constructed urgently.The fourth part states that the construction of legal regulation system of lead investors.In terms of path selection,the legal status of equity-based crowdfunding should first be established in the revision of the securities law,which is the basis for the regulation of equity-based crowdfunding and lead investors;Second,while improving private equity crowdfunding and introducing the specific regulation for equity-based crowdfunding,the concrete and specific provisions of lead investors should also be included.In terms of concrete construction,in addition to burdening corresponding obligations in different legal relationships in accordance with the current legal framework,we should also provide the fiduciary duty of lead investors in legislation as the core of the legal regulation system.Finally,with the corresponding risk prevention systems,we can fully prevent moral risks of lead investors and achieve the balance between capital formation and the protection of interests of general investors.