1. Risk of touching the red line of public offering of securities or "illegal fund-raising". The development of equity crowdfunding has impacted the traditional dividing line between "public offering" and "private offering", making the traditional offline fund-raising activities change to online, thus stepping into the traditional "public offering" field.
2. There is the risk of investment contract fraud. Equity crowdfunding is actually an investment contract signed by investors and financiers. If there is a certain interest relationship between the lead investor with mature investment experience and the financier, and the financier escapes after obtaining a large amount of financing money or refuses to pay the agreed property on the pretext of investment failure, the investor will be cheated.
3. The rights and obligations of the equity crowdfunding platform are vague. In addition to the intermediary function, the equity crowdfunding platform also has the function of managing and supervising transactions, and the rights and obligations stipulated in the format contract of investment and financing required by the equity crowdfunding platform are also unequal. Therefore, the relationship between the two parties should be clarified and the rights and obligations of both parties should be set according to the provisions of the company law.
Legal basis:
People's Republic of China (PRC) Securities Law
Article 10 The public offering of securities must meet the conditions stipulated by laws and administrative regulations, and be reported to the securities regulatory authority of the State Council or the department authorized by the State Council for approval according to law; No unit or individual may publicly issue securities without approval according to law. In any of the following circumstances, it is a public offering of shares:
(1) Issuing securities to unspecified objects;
(2) More than 200 people have issued securities to specific objects;
(3) Other issuance acts as stipulated by laws and administrative regulations. Non-public issuance of securities shall not be carried out by advertising, public persuasion or disguised publicity.
Measures for the Administration of Private Equity Crowdfunding (for Trial Implementation)
Article 3 Private equity crowdfunding 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 interests and social interests.