Two-Way Selection of Venture Capital and P2P Platform

Abstract

Venture capital has the special favor to P2P platform. The new rules of network loan make P2P platform operate more standardized. As the problematic platform gradually collapsed, the concentration ratio increased. P2P platform plays a significant role in the alleviation of the SME’s financial problems. What’s more, national policies encourage social innovation and entrepreneurship. So future prospects of P2P platform are worth waiting for. This paper analyzes the motivation and effect on two-way selection of venture capital and P2P platform. Empirical results show that venture capital helps P2P platform spread risk and improve risk matching ability; venture capital can increase the trading volume of platform, which indicates that the two-way selection of venture capital and P2P platform may benefit SMEs’ financing.