Equity crowdfunding- Considering potential risks and liabilities as the industry grows and matures
Within the rapidly-expanding alternative finance industry, equity crowdfunding is emerging as a popular method of growth finance. Equity crowdfunding is a mechanism by which a broad group of investors can fund start-up companies and small businesses in return for equity.
In collaboration with UK insurance company AIG, the researchers of CrowdfundingHub worked together with leading European experts from SyndicateRoom, Seedrs, AIG, CrowdCube, Invesdor, Twintangibles and Legal Alternative to create a state-of-the-art overview of the Equity Crowdfunding industry.
Summary of report
Introduction: The rise and rise of equity crowdfunding
Overview of the growth of the equity crowdfunding industry globally and in Europa.
Chapter 1: Latest developments in equity crowdfunding
Secondary markets, business angels and equity crowdfunding, growth in deal sizes, serial crowdfunding and DIY crowdfunding campaigns.
Chapter 2: Striking the right regulatory balance
Investor protection versus access to finance for companies. Do regulations help or hinder the growth of the equity crowdfunding industry? What will be the impact of Brexit on the equity crowdfunding industry.
Chapter 3: Tackling investor protection
Direct shareholder versus nominee structure, due diligence and cross-border considerations
Chapter 4: Mind the gap: Risks and liabilities associated with crowdfunding platforms
Risks and liabilities associated with crowdfunding platforms, insurance as mechanism for sustainable growth of platforms and fraud risk case studies.