Crowdfunding website Seedrs, which launched just over a month ago, has already secured investment for three start-ups.
The Financial Services Authority last week warned inexperienced investors of the potential risks of using crowdfunding sites. These offer individuals the opportunity to invest small amounts in fledgling businesses. In return investors receive a small equity stake or benefits such as discounted or free goods. The risks for investors include businesses taking a long time to make a return or failing. Yet for small businesses, sites such as fundingcircle.com or crowdcube.com, can prove an attractive way to raise funds.Seedrs.com is the only crowdfunding site authorised and regulated by the FSA.