A Research On The Financing Issue Of Small And Medium-sized Internet BW Company

With the penetration of the Internet,more and more small and medium-sized Internet companies are constantly entering the market,promoting the development of science and technology and boosting the economy.However,such enterprises are often constrained by the problem of financing difficulties.This article will focus on this issue and try to help small and medium-sized Internet companies find financing outlets.Based on the existing literature research results,this paper uses case studies and literature research methods to introduce the macroscopic development of China’s Internet industry,the development status of small and medium-sized Internet enterprises and the impact of current operation mode to these enterprises’ funding needs.Therefore,this paper explores the common financing methods divided by internal and external financing for SMEs in the industry.BW Technology Co.,Ltd.is selected representative of small and medium-sized Internet companies.The paper introduces the development history and main business models of BW Technology Co.,Ltd.,and analyzes the current direction of capital use and the capital needs of BW.The decline in revenue due to the reduction of business models,the current scale of research and development fail to keep up with the level of peers and the continued occupation of market funds are the main reasons for the company’s constant funding needs.Then,the paper reviews the development process of BW from the initial establishment to the current Pre-B round financing,presenting the financing channels of the company at different stages,and analyzes the financing channels adopted by the company separately.Furthermore,factors leading to the financing difficulties are summarized.To solve these problem accordingly,it is suggested that the government should improve the laws and regulations for small and medium-sized enterprises,help enterprises obtain bank financial support and play a role in guiding and supporting policy funds.Financial institutions such as specialized policy banks also need to be established for small and medium-sized enterprises.Besides,the sound credit guarantee systems and the development of multi-level capital market systems are necessary.SMEs should also strengthen their own operations and their own credit construction.Meanwhile,rationally using internal financing,understanding the use of relevant support policies,and seeking for more new Internet financing channels like peer-to-peers funding and crowdfunding to help broaden current financing channels.This paper proposes a variety of methods from multiple dimensions to help small and medium-sized Internet companies solve financing problems.At the same time,it considers the existing situation and provides reference for the development of SMEs in the future.