Difference between equity crowdfunding and equity financing

Legal analysis: equity crowdfunding can be seen as a supplement to equity financing. Equity crowdfunding is an online investment and financing model based on the equity crowdfunding platform, while equity financing focuses on offline. The purpose of the two is also different, equity crowdfunding is generally small and micro enterprises lack of funds and financing, while equity crowdfunding part of the lack of funds for crowdfunding, and the other part is to promote brand awareness, and the integration of resources.... Lastly, equity crowdfunding has a low threshold and low investment, while equity financing has more invisible investment.

Legal basis: "Administrative Measures for the Issuance of Securities by Listed Companies"

Article 3 The issuance of securities by a listed company may be issued publicly to unspecified persons or privately to specified persons.

Article 10 The amount and use of the proceeds raised by a listed company shall comply with the following provisions:

(1) The amount of the proceeds raised shall not exceed the amount required for the project;

(2) The use of the proceeds raised shall be in accordance with the national industrial policy and the provisions of laws and administrative regulations relating to environmental protection, land management, etc.

(3) In addition to the financial enterprises, the proceeds raised shall not be used for holding transactional financial assets. The use of the project shall not be financial investment such as holding trading financial assets and available-for-sale financial assets, lending to others, entrusting financial management, etc., and shall not be directly or indirectly invested in the company whose main business is trading securities;

(d) After the implementation of the investment project, it will not generate competition in the same industry with the controlling shareholders or actual controllers, or affect the independence of the company's production and operation;

(e) Establishment of a special storage system for fund-raising funds, which must be deposited in a special account decided by the Board of Directors of the Company.