InvestingZone is an appointed representative of E-Synergy Limited, an FCA-regulated venture capital fund manager and the team have experience in early-stage venture capital. The company has gone to great efforts to make sure that the risks inherent in early stage investments are clearly presented on its platform and that only investors who understand those risks are admitted.
We would welcome FCA regulation to standardise the way this is done across other platforms and to help give investors confidence in this newly accessible asset class. We do not agree that participation in equity crowdfunding, and the fantastic tax breaks that go with it, should be limited to high net worth or sophisticated investors and are glad that recent indications from the FCA and the Treasury suggest that this will not be the case.
A concern is the number of companies entering what is essentially a professional financial sector without sufficient experience and others sites have very lax investor registration processes. Whist we encourage investors to carry out a certain level of due diligence, it is still the responsibility of the platform investment executives to ensure that all listings are sensible and only investors who understand the risks are admitted.
With regards to limiting the amount that can be invested, we feel that this could be patronising to investors who can demonstrate that they know what they're doing but just don't happen to be rich.