Post by bigfoot12 on Jun 4, 2015 15:25:51 GMT
In today's City AM Justin Urquhart Stewart discusses the need for better due diligence from crowd funding platforms. He is an adviser to Venture Founders which I hadn't heard of before.
They are very expensive. They charge the company £2,500 + VAT legal fee plus 6% of funds raised if successful. They also raise an extra 3% which is a monitoring fee. This covers first 3 years, not clear if further fees are due after this time. They then charge the investor 20% of any profit on exit. They will need to do a lot of due diligence to make those fees worthwhile.
They are very expensive. They charge the company £2,500 + VAT legal fee plus 6% of funds raised if successful. They also raise an extra 3% which is a monitoring fee. This covers first 3 years, not clear if further fees are due after this time. They then charge the investor 20% of any profit on exit. They will need to do a lot of due diligence to make those fees worthwhile.