Research On Legislative Regulations Of Investor Protection For Equity Crowdfunding

As a typical representative of Internet financing,equity crowdfunding plays an active role in expanding private capital financing channels,meeting the financing needs of start-ups,small and medium-sized enterprises,and alleviating their financing difficulties.However,most of the fundraisers that use equity crowdfunding for financing are start-ups,small and medium-sized enterprises,and such enterprises have small scale,incomplete information,weak risk resistance,and extremely high failure rates.I n addition,the system design of equity crowdfunding uses the Internet platform,breaking through the shackles of time and space,expanding the coverage of investors,and including the social public who were previously excluded from venture capital and equity investment into the scope of investors.To enable individual non-professional investors without relevant investment experience,lack of investment knowledge,and weak ability to control risks to enter this investment field,investors are facing investment risks that do not match their own investment capabilities and risk-taking capabilities,Investors are more vulnerable,which may discourage investors’ enthusiasm for investment and force them to face the pressure of high risk of loss of investment funds,which ultimately forces investors to choose to "vote with their feet" and leave the equity crowdfunding investment field..Investors are of great significance to equity crowdfunding.In the design of its own system,equity crowdfunding aims to reduce financing costs by relaxing regulatory requirements.However,this undoubtedly increases the risk for equity crowdfunding investors.Moreover,in the current legislation of our country,the protection of equity crowdfunding investors is in a state of absence,and the official attitude towards it is also a wait-and-see attitude,which is very cautious.Therefore,on the basis of an overview analysis of the new financing model of equity crowdfunding,this article interprets equity crowdfunding investors from t wo aspects: the risk factor of equity crowdfunding itself and the weak position of investors in equity crowdfunding The general principle of protection,by analyzing the current status of legislative protection of equity crowdfunding investors in China,exploring its existing problems and the causes of the problems,on the basis of drawing on the beneficial experience and practice of the United States,Italy,Australia and other countries,through legislation to grant equity crowdfunding legal Status,establish a small-issue issuance exemption system,control the amount of funds involved in equity crowdfunding by limiting the amount of capital and investment,and increase the risk-bearing capacity of investors by reducing the losses that investors may suffer;clear equity Crowdfunding operation mode,formulating platform supervision rules,laying a solid foundation for the healthy and orderly development of equity crowdfunding.Under this premise,starting with the participating entities of equity crowdfunding,the relevant legislation is given to funders,investors and equity crowdfunding platforms with different obligations,from information disclosure,investor education,the construction of effective communication channels and investors Enhancement of self-protection awareness and other aspects to strengthen the protection of equity crowdfunding investors.