AI Media Advisory: equity raising process risks a deep explanation
All the chips as it is understood in the “whip”, which has become many people realize the dream of a new form. Because of its low barriers, diversity, bringing together the grass-roots forces, focusing on creative characteristics, many people inside and outside all confident, is considered following the 2013 P2P NET loan growth of domestic brutality after 2014 domestic financial one of the most popular areas of the Internet. So, what is the general flow of equity raised?
Equity raising process
Equity raised in the process risks
IiMedia Research (AI Media Advisory) recent study released the equity raising in the process of risk analysis. Report on the four phases of the process of risk analyses. It is understood that the April 18 on the financial development of China Internet Summit in Shenzhen, iiMedia Research (AI Media Advisory) will exclusively publish heavyweight research report of the 2015 financial development of China’s Internet market research reports, including the 2015 financial status quo of China’s Internet, Internet financial business analysis and so on. It is understood that the report more fully showcase 2015 financial authority of the status and development trend of China’s Internet data analysis.
First, review
1, project information for sponsors of authenticity and professionalism, all the members of the platform during the approval process and no professional evaluation agencies confirmed that interest among project promoters and stakeholders raised platforms (raised platforms in the sponsor financing is successful, funds raised from it charge a certain percentage of Commission), probably allows them to review with remarkable fairness. Raised platforms in its service agreements often set up auditing of this disclaimer, that is not responsible for authenticity and reliability of information items. Platform program review this part not materially reduce the risk of investors investors followed benzyl Yun Shan ping ǚ loopholes in flood period-Kang killed more bald Yin ju Yong ┑ Sam unadorned guillotine
2, China’s laws on illegal fund-raising identified as: without the Department’s approval or loan by reason of legitimate business, and to the public through the media (not a specific object) advocacy and commitment ahead of some kind, currency, equity and so on as a way to raise funds in return. Equity raised platform via the Internet through the sale of shares in the process of investment and financing, to comply with laws and regulations need to be resolved “not specific” problem. Due to the openness and interactivity of the Internet, the beginning balance of equity raise is coming under investors do not always specific, in order not to touch the legal red lines must pass a series of raised platforms of the real-name authentication, investment qualifications will not be by way of specific investors for particular investors with certain qualifications.
Second, display and publicity phases of the project
Project sponsors to gain support from investors, need to show creativity and feasibility of the project in the platform. But most of these projects have not yet applied for a patent, it is not protected by intellectual property law. On raised platform while a few month period of projects also increases the risk of project were fake.
Third, the project evaluation stage
Project sponsors directly about the project adequate information as well as the possible risks, to facilitate financing, it may provide false information or concealment of some risk, to show investors the “perfect” information assessment and decision of misleading investors. Project initiator and investor information asymmetry led investors in the project appraisal is inaccurate.
Four project implementation phase
1, after collecting cash raised platforms form the funding pool, may not knowingly transferred funds in investor funds in the pool or diverted to any other use may lead to crimes such as fraudulent fund-raising. Raised platform typically did not pay business license, but some platforms act as a payment intermediary role breaches “without permission from the People’s Bank of China, and shall not engage in any non-financial institutions and individuals or disguised payments” of laws and regulations.
After 2, the project sponsors to raise money, which may not meet project commitments, that the funds appropriated for his use, poor management leads to loss of investors ‘ money after the platform vote; sponsors after obtaining financing, the use of funds and direction, if not effectively controlled by investors or sponsors on the use of funds is not legally binding, will also result in loss of investors ‘ money.
3, the project raised some of the technologies under development or technology test phase, if research and development produced products fail to achieve the desired functionality, or product defects, the project’s investors would suffer losses. Modern knowledge to accelerate and shorten the life cycle of the new technology, if a technology or product being replaced by another newer technologies or products, or the strength of the enterprise take the lead in research and development to produce a similar product, the initiator will greatly decrease the value of the project, investors are likely to face losses.
4, launching a comprehensive quality is limited, failed to implement the project very well, cause the operation to fail; investors in the project monitoring process, miscommunication with the sponsor, impeding the normal operation of the project.
Faced with these risks, and how to actively respond to? on April 18, 2015 China Shenzhen finance development of the coming Summit, equity raising Internet financial issues also will serve as a topic in the afternoon of the first day of the Conference “2015 equity raising in China Summit Forum” for discussion. (Paying attention to official letters in “Media Advisory” micro signal: iiMediaResearch, click on the “details of the Assembly” to view specific content; sign up for registration please reply to “grab votes”. )
According to understanding, Summit hosted party iiMedia Research Group (AI Media Advisory Group) intends invited Ali small micro financial, and Sequoia Capital, and VChello micro voted network, and Tencent micro paid, and Baidu hundred fubao, and Lu Jin by, and Su Ningyun commercial, Internet financial frontier Enterprise Shang hundred elite led, they will around P2P borrowing industry of assets diversified trend, and Internet financial era change of focused points, problem for in-depth discussion, discuss Internet financial development of road. This Summit will be an investor, Internet professionals Internet exchange of total new opportunities for the development of the financial sector and development’s annual event.