V.2, N.48 - The announcement by Mainvest, one of the most community-friendly federally registered investment crowdfunding portals, that it is shutting down in a few weeks is awful news. Sure, there are plenty of other portals operating, but nearly all of them have fledgling business models.
Wefunder absolutely engages in predatory behavior, I'm sorry to say. Most of their community-minded approach is PR. Not only have they specifically racially goaded me for calling them out about their behavior (including but certainly not limited to what you've point out about monopolistic practices-- which couch them from accountability for fraud)...They have a demonstrable history of flat-out IGNORING complaints they don't want to address. I've had to go to authorities in other countries where investors have been defrauded on Wefunder-- including the UK, which never gave FCA approval to them-- just because the culture in the States has emboldened and babied them. They are out of hand and they know exactly what they are doing.
The end of MainVest is tragic. It is also a surprise. It was one of the more successful portals. Many are smaller still. The Crowdfunding Professional Association is advocating for a tax credit for small investors who invest in Regulation Crowdfunding offerings. Such an incentive could dramatically increase capital flows to small businesses under this exemption.
Wefunder absolutely engages in predatory behavior, I'm sorry to say. Most of their community-minded approach is PR. Not only have they specifically racially goaded me for calling them out about their behavior (including but certainly not limited to what you've point out about monopolistic practices-- which couch them from accountability for fraud)...They have a demonstrable history of flat-out IGNORING complaints they don't want to address. I've had to go to authorities in other countries where investors have been defrauded on Wefunder-- including the UK, which never gave FCA approval to them-- just because the culture in the States has emboldened and babied them. They are out of hand and they know exactly what they are doing.
The end of MainVest is tragic. It is also a surprise. It was one of the more successful portals. Many are smaller still. The Crowdfunding Professional Association is advocating for a tax credit for small investors who invest in Regulation Crowdfunding offerings. Such an incentive could dramatically increase capital flows to small businesses under this exemption.