When is a Crowd really only a small group of friends?

Sqaureknot take the crowd out of Crowdfunding.

The Glasgow based site has been going for almost 3 years and yet the pitches on the site have very little resemblance to anything we know as equity crowdfunding. The few pitches that have completed, have between 7 and 3 investors each, putting in amounts from £60k to £100k. That is barely a group let alone a crowd and is almost certainly just friends or even the company's own directors investing. Pitches have been known to last over a year here - who knows, maybe longer.

All this is carried out with the sanction of the FCA via a third party called Kession Capital Ltd. There is clearly something wrong with the FCA, their system of verifying the quasi licenses these third parties hand out or both.