What Is Online Investment Banking?

Web Investment Bank (Chinese referred to as "Internet Investment Bank", English referred to as "Wib") refers to a new type of emerging financial institutions that combines the business of sellers and buyers of the Internet with traditional offline investment banks. Internet investment banks mainly use web 2.0, search engines, cloud computing, big data, social networks, third-party payment, mobile Internet and other efficient Internet tools to conduct various businesses such as venture capital investment, project promotion, and business cooperation. ^[1]

Internet Investment Bank

The business scope of Internet investment banks includes, but is not limited to: the combination of the Internet and the seller's business of traditional investment banks. The "Internet brokerage", "Internet stock brokerage", "Internet asset management", "Internet stock industry research", " "Internet trust" and other Internet investment bank seller businesses; the combination of the Internet and the buyer's business of traditional investment banks created the "Internet

At present, the organizational forms of Internet investment banks are mainly divided into three types:

The first is an independent professional Internet investment bank. Such emerging financial institutions are usually founded by professional Internet and investment professional composite teams. The scope of financing targets is wide, ^[3]

Transparency: Under the Internet investment banking model, both entrepreneurs and investors can complete information screening, matching, and capital pricing by themselves through the online platform. There is no traditional intermediary, no transaction costs, and no monopoly profits. The transparency of Internet investment banking business has effectively solved the low financing efficiency caused by the information asymmetry of traditional investment banking business. ^[6]

The more the industry is underdeveloped, the more the Internet can play its transforming role. China's financial system is far from mature and perfect, but Internet finance has long been "massive" in the country, and has shown infinite vitality, no less than the United States. The emergence of Ali has given China a world-class e-commerce giant and profoundly affected the world's e-commerce landscape. The emergence of Internet finance also allows China to have its own Internet investment banking giant, helping China to reshape the new pattern of world economics and finance. ^[7]

1. On March 5, 2015, Li Keqiang pointed out in the summary review of the government work reports of the two conferences: In 2014, China focused on fostering new growth points, accelerating the development of the service industry, and supporting the development of mobile Internet, integrated circuits, high-end equipment manufacturing, and new technologies. Strategic emerging industries such as energy vehicles, the emergence of Internet finance, new business formats such as e-commerce, and logistics and express delivery have grown rapidly, and many makers have emerged, and cultural and creative industries have flourished. ^[8]

2. On March 11, 2015, the General Office of the State Council issued the Guiding Opinions on the Development of Public Creation Space to Promote Public Innovation and Entrepreneurship (hereinafter referred to as the "Opinions") ^[9] , and proposed a total of 8 key tasks in order to create a Innovate the entrepreneurial ecological environment, inspire millions of people to create vitality, and build a new engine of economic development. ^{[10] The} guidance also pointed out that it is necessary to carry out Internet equity crowdfunding pilots to enhance the crowdfunding's ability to serve the public's innovation and entrepreneurship. Regulate and develop regional equity markets serving small and micro enterprises, promote the financing of science and technology start-ups, and improve the venture capital and angel investment exit and circulation mechanisms. ^[11]

3. Three red lines that cannot be touched: first, red lines that cannot raise funds illegally; second, red lines that absorb public deposits; third, red lines that are fraudulent. ^[12]