We strive to ensure the safety of our users and customers. We have chosen not to work with a few platforms due to their standards of vetting not meeting ours in order to deliver the highest quality of investment selection to our audience.
Since online financing platforms provide limited information about the people involved in an investment deal, government agencies like the SEC, and FINRA, along with other service providers are working to eliminate these risks from the Crowdfunding world by providing transparency and security to both investors and entrepreneurs.
Many Equity Crowdfunding platforms themselves perform their own due diligence officiating those that list on their sites. When posting an equity offering, the entrepreneur must determine that both the platform and the investors are legitimate. Likewise when investing in an equity offering, the accredited investor must determine that both the startup company and the platform are legitimate. Online investment platforms also have regulatory obligations to perform due diligence and potential liabilities that due diligence can shield them from.
At Fund Wisdom we review platforms prior to working with them. We have chosen to not include Angel Investment Network, a UK-based platform that states they have "the largest database of investors worldwide" with "3,500 angel investors from the US and the remaining amount are spread across 22 other countries." This is due to the quality of offerings and compensation structure. Entrepreneurs report that upon creating a company profile they receive email notifications of investor interest in their equity offering. However, in order to be further connected with these investors, the entrepreneur must pay $99 to the platform, known as a "pay-to-pitch" policy. You can read more about this in an article in our news section. We therefore do not list any Angel Investment Network offerings.
CrowdCheck is a due diligence and disclosure company for online offerings providing transparency and investor protection to platforms, investors and entrepreneurs. Sara Hanks, Founder and CEO of the firm recently shared with us, "We help to make sure the investor has the tools to make an informed investment decision. We thus protect the issue, the investor and the intermediary."
Photo from Yuri Smoilov