There’s no doubt that the rise of crowdfunding has enabled businesses and projects to previously untapped wells of finance, but how well protected are investors?
Crowdfunding, in its current guise, ranges from equity investing, to debt provision, to incentive backing.
However, the concept is still shrouded in mystery when it comes to regulation. It’s hard to know how respectable companies are when all we as investors are presented with is a short blurb.
Now it seems that news from the other side of the Atlantic has cast further doubt on the mechanism.
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