The Memo examined SyndicateRoom, Seedrs and Crowdcube. Below is an extract from the article, follow this link to read more.
Crowdfunding, investing in small businesses in the hope of a return, is terribly exciting.
From investors in Camden Town Brewery cashing in upon its multi-million pound sale to brewer AB InBev, or eCar’s similar sale to Europcar.
Especially with today’s painfully low interest rates of just 0.25%, where there’s literally no point waiting for your savings to grow in a bank account, people are actively looking for better places to put their savings.
But if you invest in crowdfunding, especially on the three major crowdfunding platforms Seedrs, Crowdcube, and SyndicateRoom, what are your returns going to be?
Rolling the dice
It’s not an easy question to answer, the crowdfunding industry has been fairly opaque in the past.
There’s also the darker side of equity crowdfunding, where failure rates are disguised and high profile businesses go under, taking ordinary investor’s money along with them.
Like gambling, there’s always a large risk.
Data brings hope
But that began to change earlier this month, when Seedrs and SyndicateRoom began releasing detailed figures about the success of their portfolios.
There are some caveats, but we’ll deal with them in a minute.
So, if you’re trying to decide between Seedrs, CrowdCube and Syndicate room, what could your returns be?