What are equity crowdfunding and Internet equity crowdfunding?

Equity crowdfunding refers to the financing method that financing enterprises use the internet crowdfunding platform to show investors the information of enterprises or projects that they are about to start or have started, attract investors to join, and give back to investors in the form of equity.

Equity crowdfunding is a new financing model. Investors choose projects through the Internet crowdfunding platform, and then invest through the platform to obtain the equity of the invested enterprise or project. The core problem of equity crowdfunding, which is different from other forms of crowdfunding, is to see whether the returns provided by financiers to investors mainly exist in the form of equity. Even if 100% does not exist in the form of equity, at least most of the returns should be reflected in equity returns.

Classification of equity crowdfunding

According to different standards, equity crowdfunding can be divided into the following categories:

(1) Private Equity Crowdfunding and Public Equity Crowdfunding

According to the nature of crowdfunding behavior, the former refers to equity crowdfunding that still defines crowdfunding behavior as private equity. It can be said that the current domestic equity crowdfunding platforms are all private equity; On the contrary, the United States, Britain and other countries with rapid development of equity crowdfunding define crowdfunding as public offering, and crowdfunding platforms can raise funds from the public.

(B) secured equity crowdfunding and unsecured equity crowdfunding

According to whether there is security or not. Guaranteed equity crowdfunding mainly refers to adding a guarantee element to the equity crowdfunding business, and stipulating that the crowdfunding investor or institution that recommends the project and guarantees the project is the sponsor. If the publicly offered project fails within one year, the sponsor will pay all the investment and act as the guarantor. Unsecured equity crowdfunding refers to equity crowdfunding without guarantee elements, and most domestic equity crowdfunding platforms are the latter.

(3) Online equity crowdfunding and offline equity crowdfunding

Divided according to the channels of equity crowdfunding business. Online equity crowdfunding mainly means that all information display and transactions between financiers, investors and equity crowdfunding platforms are completed through the Internet, including most processes of many equity crowdfunding platforms are completed online; Offline equity crowdfunding, also known as circle crowdfunding, mainly refers to some small crowdfunding activities based on acquaintances such as classmates and friends.

(4) Seed platform, angel platform and growth platform

According to the stage of financing projects, according to the three different stages of financing projects: seed stage, angel stage and growth stage, different equity crowdfunding platforms are set up, and finally the "gradual" development of equity crowdfunding platforms is realized. Domestic equity crowdfunding platforms are mostly growth platforms.

(5) Integrated equity crowdfunding platform and vertical equity crowdfunding platform.

According to the business scope of crowdfunding platform. The comprehensive equity crowdfunding platform has a wide business scope and rarely involves the division of specific industries. At present, the relatively large equity crowdfunding platforms developed in China are basically comprehensive platforms; Vertical equity platform, its business scope has a clear industry division.