Pointing the finger at “deceitful behaviour taking place on [some] crowdfunding platforms” he claimes investors are not given the right dose of anti-virus to be part of the game.
Currently, if you consider the two sides of crowdfunding – investors and companies – then you are looking at a match akin to schoolchildren vs Man United. If an ordinary investor is someone with little knowledge of how start-ups and early stage companies function then, out of 100%, I’d say around 99% in terms of risk. Investors get locked in and companies and their directors can do pretty much what they like with the money…
But, according to his view, there is more than that:
The most alarming aspect of equity crowdfunding is the lack of transparency and the twisted PR, which it seems most media outlets take as gospel. This has created a monster. If you are going to tell the public that they don’t want to miss the next Facebook, and that the whole system is backed by the Government (via S/EIS) and that the Financial Conduct Authority approves it all – then hey, they’re going to believe you.
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