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Certain valuations achieved recently on equity crowdfunding platforms show potential bubble-like signs.

In the past there have been calls for tighter advertising regulation on equity crowdfunding platforms, and the FCA (Financial Conduct Authority) had found that certain  platforms were giving a “misleading or unrealistically optimistic impression of the investment”.

When respected angel investors lead the crowdfunding round, you can often feel more comfortable that the valuation seems realistic. Syndicate Room is an investor led platform where individual investors can ‘piggy-back’ on crowdfunding rounds with well known business angels. Individual investors on Syndicate Room receive the same share class and price per share as the lead investors. 

In a risky market such as equity crowdfunding, it is important investors realise the risks that they can easily encounter.

Read the full article here.