The FSA said so called “crowdfunding” internet sites that allow start-ups and small companies to raise funds in return for small equity stakes, should “be targeted at sophisticated investors who know how to value a start-up business, understand the risks involved and that investors could lose all of their money”.
Michael Howe, director of career-change website Escape the City, which raised £600,000 from small investors in 10 days on Crowdcube, defended crowdfunding. “It’s great that normal people can put a bit of money into a growing company and feel like they’re part of something tangible,” he said.
Founded in 2010, the industry website, Crowdsourcing.org, is a neutral organization dedicated solely
to crowdsourcing and crowdfunding. As one of the most influential and credible authorities in the crowdsourcing space,
Crowdsourcing.org is recognized worldwide for its intellectual capital, crowdsourcing and crowdfunding
practice expertise and unbiased thought leadership.