The FCA review of Equity Crowdfunding will change nothing.
Why?
We were contacted recently by them about this review. They asked us to give up some time to give them our views.
We replied that we would be delighted but that it would cost something for our time and access to our 5 years of data.
As expected they replied that they dont have any budget to pay for consultancy. So they will, as they did the last time , use the platforms to 'advise' them on regulating the platforms.
Is it any wonder the FCA is held in such high regard?
One word of free advice for you - don't be fooled by the number of closures the platforms will quote at you. Crowdcube are currently pringing that only 23 of their 400+ business have closed - which is strictly true. But they as usual ignore three key facts. Firstly most if not all of the others have missed their targets and are miles off course for any ROI. Secondly it can take quite a while for business to get through its Crowdcube cash and 2015 and 2016 have seen far more pitches completed than 2011/12/13/and 14 put together. And finally it is the nature of the failures not the numbers that is important - cf Rebus and SCC to name two.
So as usual it's a question of how you read the stats. So please do try to be critical.
well, if they have no budget, maybe they could set up a kickstarter campaign to gather the necessary funds.
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