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Crowd Funding (UK has taken an unregulated apporach (FCA - Crowdfunding is…
Crowd Funding
UK has taken an unregulated apporach
FCA - Crowdfunding is very high risk
Investors are very likely to lose all thier money
Even large crowd funded businesses can enter administration
Hokkei
320k
Upper St
243k
Rebus
820k
Investment is highly illiquid
Funds can not be accessed easily by investors
Investors should be given protection
Insurance Levies
Publication of Company Failures
Alternatives
Venture Capitalist Trusts
Enterprise Investment Schemes
Tax Breaks are provided
US has launched with a significantly more regulated approach
SEC delayed launching adding complex regulation
Claims that there is a lack of trust from investors
Disclosure requirements once group reaches over 500
Must go public once business reaches a certain size
Must file independantly vetted accounts with SEC
Company clients also lose when the business fails
Investors can recive 10x growth in under 3 years