Study on Operation Mode and Risk of Equity Crowdfunding Platforms in China

Abstract

The rapid development of the mobile internet has brought enormous entrepre-neurial opportunities to various industries. The rise of angel investment and equity crowdfunding has enabled entrepreneurs to obtain funds and resources quickly. Crowd-funding was first appeared in the United States. Fundavlog is the first crowdfunding plat-form named by Michael Sullivan. On this platform, the promoters make related financing through the way of playing videos. There are four modes of crowdfunding, including debt crowdfunding, product crowdfunding, equity crowdfunding and public welfare crowd-funding. After that, giants in China such as Jingdong Group, Taobao Group and Suning Group also entered the equity crowdfunding industry. JD Crowdfunding Platform launched “JD Dongjia”, using the “lead investment + follow-up investment” model to achieve the combination of product crowdfunding and equity crowdfunding. Study on Operation Mode and Risk of Equity Crowdfunding Platforms in ChinaDownload