How does equity crowdfunding work? How to go through the equity crowdfunding process

1) If you are a project party, the process is as follows:

Registration: First register as a project person on the big vote - fill in: then click to initiate my project, fill in according to the instructions of each column inside - preliminary review - warm-up - admit - close the case - confirm the right.

The review of the investment is very strict, and the business plan, subscription grade, warrant information, etc. must be complete, and the information disclosure is incomplete, or the risk warning is not sufficient.

2) If you are an investor, the process is as follows:

Registration: First register investors on the big cast - select: then browse through various crowdfunding projects, after fancy a project, there are multiple subscription grades on the right side of the project, and you choose the amount according to your ability to bear - pay the deposit:

Then click "I want to subscribe", **Online banking to pay 2% deposit - closed: After the crowdfunding is successful, the investment agreement is signed, and then the investment money is made in accordance with the agreement, and the equity certificate is obtained.

Legal Analysis:1The project sponsor submits the project plan or business plan to the crowdfunding platform, and sets the amount to be raised, the transferable equity ratio and the deadline for fundraising.

2.The crowdfunding platform reviews the project plan or business plan submitted by the fundraiser, and the scope of the review includes the authenticity, completeness, enforceability and investment value. 3.

After the crowdfunding platform is approved, the corresponding project information and financing information will be published on the network. 4.Individuals or teams interested in the startup or project can commit to or actually deliver a certain amount of money within the target period.

5.At the end of the target period, if the fundraising is successful, and the investor signs the relevant agreement with the fundraiser, the funds are returned to each investor.

Legal basis: "Measures for the Administration of Private Equity Crowdfunding Financing (for Trial Implementation)" Article 3 Private equity crowdfunding financing shall follow the principles of honesty, trustworthiness, voluntariness and fairness, protect the legitimate rights and interests of investors, respect the intellectual property rights of financiers, and shall not harm the national interest and the social public interest.

1. Equity crowdfunding refers to the transfer of a certain proportion of shares by the company to ordinary investors, and the investors obtain future income by contributing capital to the company. 2. Legal risks of equity crowdfunding: 1. False or incomplete project information.

2. Lack of assessment of investors' risk tolerance. 3. Lack of protection against impulsive decision-making. 4. Lack of protection of shareholders' rights.

5. There is no post-investment information disclosure and supervision of the use of funds. 6. Lack of post-investment management leads to hopeless exit. According to Article 6 of the Interpretation of the Supreme People's Court on Several Issues Concerning the Specific Application of Law in the Trial of Criminal Cases of Illegal Fundraising:

Without the approval of the relevant competent departments of the state, the issuance of ** or corporate or enterprise bonds to unspecified social targets, the disguised issuance of ** or corporate or enterprise bonds by means of equity transfer, etc., or the issuance or disguised issuance of ** to specific targets, or the cumulative number of corporate or enterprise bonds exceeds 200, shall be found to be the crime of unauthorized issuance of **, corporate or enterprise bonds.

Legal analysis: Equity crowdfunding refers to the transfer of a certain percentage of shares by a company to ordinary investors. Investors receive future earnings by investing in the company.

This model of financing based on Internet channels is called equity crowdfunding. The main participants of equity crowdfunding include fundraisers, funders and members of the crowdfunding platform Sanhe, and some platforms also have custodians. The general operation process of equity crowdfunding is roughly as follows:

1. The initiator of the start-up enterprise or project shall submit the project plan or business plan to the crowdfunding platform, and set the amount to be raised, the equity ratio that can be transferred and the deadline for fundraising; 2. The crowdfunding platform shall review the project plan or business plan submitted by the fundraiser, and the scope of the review shall include but is not limited to authenticity, completeness, enforceability and investment value; 3. After the crowdfunding platform is approved, the corresponding project information and financing information will be released on the network; 4. Individuals or teams interested in the start-up enterprise or project can commit or actually deliver a certain amount of funds within the target period; 5. If the target period is closed and the fundraising is successful, the investor and the fundraiser shall sign relevant agreements; If the fundraising is unsuccessful, the funds shall be returned to the funders. This is the process associated with equity crowdfunding.

Legal basis: Article 35 of the **Law of the People's Republic of China** If the parties to the transaction buy and sell in accordance with the law, it must be issued and delivered in accordance with the law. ** that is not issued in accordance with the law shall not be bought and sold.

Legal analysis: 1. The initiator of the start-up enterprise or project submits the project plan or business plan to the crowdfunding platform, and sets the amount to be raised, the proportion of equity that can be transferred and the deadline for fundraising; 2. The crowdfunding platform shall review the project plan or commercial or triumphant plan submitted by the fundraiser, and the scope of the review shall include but is not limited to authenticity, completeness, enforceability and investment value; 3. After the crowdfunding platform is approved, the corresponding project information and financing information will be released on the network; 4. Individuals or teams interested in the start-up enterprise or project can commit or actually deliver a certain amount of funds within the target period; 5. If the target period is closed and the fundraising is successful, the investor and the fundraiser shall sign a relevant agreement; If the fundraising is unsuccessful, the funds shall be returned to the funders.

Legal basis: Article 13 of the ** Law of the People's Republic of China** Public issuance through the Internet and other crowdfunding methods through ** business institutions or other institutions recognized by the ***** supervision and management authority**. Issuers and investors who meet the requirements prescribed by the ***** regulatory authority may be exempted from registration or approval.