Just how dangerous is it in the new world of crowdfunding?

It’s obviously not for widows and orphans, but the risks aren’t as straightforward as you might think, says David C Stevenson.

Over the last few years the alternative finance sector – which incorporates everything from ‘equity crowdfunding’ through to peer-to-peer loans( P2P) – has had a fantastic press. Literally thousands of articles have extolled the virtues of the sector as a disruptive challenger to the ‘broken’ conventional finance sector.

Many of these articles have very sensibly mentioned the obvious risks involved with this kind of investing. In particular, that these investments aren’t protected by the government’s Financial Services [...]

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