Investors should know the problems.

In the second half of last year, could the next round of Internet financial opportunities be brought about by the start of fiery public financing?

For all investors who want to get involved, there are some problems you have to know before investing.

Question one: What are the types of public financing?

In addition to charitable groups, there are two main types of domestic financing models, one is the pre-sale of products, there is a class of equity public.

Many well-known public-funded sites are in fact a non-equity audience, this model of the participants to pay for the purchase is not a company equity, but a product option. The first domestic platform "roll Call time" was established in July 2011, to do the main business direction is the pre-sale of products. This is very similar to the Kickstarter business type of the famous American public-funded website. After the establishment of the Dream Network is also a product pre-sale type of Representative website.

However, the same product pre-sale, each site also has its own expertise in the field.

Roll call time is more like a concept product library, full of a variety of novel digital products, these products are not only a idea, many products have been completed the initial design, grinding and user testing, but has not begun to mass production. If you're a digital enthusiast, roll-call time is a good place to enjoyed.

and chasing dream net is more small literature and art, small fresh, open the homepage of the Dream Net, have the financing of the movie shooting, the pre-sale of the theme trend T-shirt, the original ecological barley pre-sale ... Even a girl released her plan to take the world in Cheongsam.

The basic model of stock-raising is to sell shares and raise funds on the Internet, and the process is that entrepreneurs launch their own entrepreneurial projects on the platform--investors through platform investment projects and equity--investors get paid. Angel Sinks, Love entrepreneurship are typical of this kind of website representative.

In love entrepreneurship has a variety of entrepreneurial products, team, creative Introduction, these presentations are only shown to have been validated investors, if investors are interested in further understanding of the project, you can also participate in Love entrepreneurship monthly Field Project Roadshow, with entrepreneurs to communicate. Finally decide whether to invest.

Question two: What is the threshold of public financing?

The threshold of product pre-sale is relatively low. Generally a product price from dozens of yuan to hundreds of yuan, equivalent to the payment of the product advance. As long as you are interested in the product, you can invest a sum of money, and then wait until the product is completed and sent to your hands.

And the stock-raising is different. To ensure that investors have the appropriate risk tolerance, the platform will generally set some threshold for investors.

As the public-chip model will be invested in a project by several small and dispersed investors, it will take a lot of effort to get entrepreneurs to one by one of all investors ' inquiries and surveys. Therefore, the public-funded sites tend to implement the "lead + with investment" system.

This system was first adopted by the well-known foreign equity platform AngelList, in fact, is to elect a person with financial strength, investment experience or a certain aspect of professional skills to do the people, responsible for coordinating the relationship between investors and projects.

Take the domestic platform as an example, the entrepreneurial model only professional venture capital organizations can act as "the lead."

The rules of the Angel exchange for "the donor" are "rich experience in a certain field, independent judgment, rich industry resources and influence, strong risk tolerance, able to professionally assist project to complete BP, determine valuation, investment terms and financing amount, assist roadshow, complete this round with investment and financing.

Because of its professional skills, and the corresponding labor, the people will receive more than the return of the investment. This kind of return is similar to the traditional fund-sharing, in which the 10%~20% of the final return will be allocated to the receiving person.

For those with a cast, the site generally confirms their risk tolerance and has a certain minimum investment limit.

Love entrepreneurship will require a risk commitment with the cast to ensure that the participants understand the risks, while setting a minimum of 30,000 yuan, the highest total amount of project raise 30% of the limit.

Question three: What are the rewards of public financing?

Participate in the production of products, you can buy below the market value of a creative product.

"While more people are interested in more than just products, there is a pillar and an element of investment, and they are looking forward to doing something with the entrepreneur." This is the biggest difference between product and electric business platform--the sense of participation. Dream Net co-founder Chen Weibang told the first financial daily reporter.

And the stock market is a very fascinating model, because it is similar to the investment of an unlisted company, which brings huge returns, may also be a penny left.

"As with the average angel investment, the public is likely to produce very big gains, but investors must also be prepared for the possible cost of money." "Gu Bing, CEO of Love, told reporters," This also determines the size of the stock will not have a peer-to-peer so large, but it can be an important part of asset allocation.

Question four: What are the risks involved in the audience?

Although the products are only spent dozens of yuan to hundreds of yuan of money, a new product purchase, in fact, the pre-sale category of products also exist risks.

An investor in a well-known public platform on the public raised a can wear smart watch, encountered in the delivery time after the delay in the delivery of the situation.

In fact, after the product design and testing is basically completed, the production process may also encounter many problems, to find manufacturers, mass production process is difficult to ensure that the quality can be delayed delivery reasons. In addition to these objective reasons, the worse is the subjective laziness of startups causing delay in delivery.

And even if you get your products in time, you may also encounter this product and the original expectations of inconsistent or shoddy.

And how to ensure that the risk to the minimum, the test of a platform for the operational capabilities. "Platform in the early review of the project sponsors, will look at the project sponsors of the network relationship and network traces, if there is no sign to do this project, we will not pass, in addition, to audit the feasibility report of the project, if we think it is feasible we will pass, The current audit line project does not exceed 10% of all application projects. Chen Weibang told reporters.

According to Chen Weibang, after the Dream Network has been successfully launched 600 projects, has not generated the project initiator fraud events, product delay delivery in the science and technology products accounted for higher, but later as long as the entrepreneur and participate in the communication between the people, we still express can understand.

But the stock of the Non-public Equity has its own investment risk, because the current stock is still in the initial stage, the imperfect system will also increase the difficulty of investment.

In the traditional investment, due diligence, information disclosure, financial audit are done by professional organizations, but in the traditional mode of these areas are missing, how investors in advance to assess the project for post management, these are pending problems.

Question five: Is there a legal risk for public financing?

Simply put, sell shares and raise money on the Internet. But when it comes to selling shares to a niche audience, both at home and abroad, it is a regulatory problem, not only so that the operator may touch the legal red line.

The main red line has two, one is whether public distribution, not specific to the issue of the object, the second is the issue of more than 200 people.

"Securities Law" stipulates that the issuance of securities to a specific object, the issuance of more than 200 people, is a public issue of securities, must be approved by the SFC or the State Council authorized departments.

The company law also stipulates that the number of shareholders of limited liability companies shall not exceed 50, and the number of shareholders in Non-public offerings shall not exceed 200 persons.

"So it is best to promote in a specific crowd, to develop a method of evaluation, to determine the investors are qualified investors with risk tolerance, the project is interested in the online registration of investors, on-line for the ' Road Show ', the final decision to invest in the form of a partnership of investors. This avoids the risk of being raised to a neutral investor. Gu Bing, CEO of Love Business, told the first financial daily reporter.