The authorisation is a recognition of the platform’s exceptionally high standards of service and transparency, and the explosive growth that SyndicateRoom has enjoyed so far proves the popularity of its unique hybrid crowdfunding model.
FCA authorisation is not required of crowdfunding platforms, and previously SyndicateRoom traded as an appointed representative of a separate, FCA-authorised firm. But SyndicateRoom sought – and secured – the elevated status voluntarily, as part of its drive to bring equity crowdfunding firmly into the mainstream of investing. It now joins Seedrs and Crowdcube as the only equity crowdfunding platforms to be FCA authorised.
However there is an important difference – SyndicateRoom invites its members to invest only in companies which are also receiving investment from professional investors.
As a result it provides small investors with the peace of mind that traditional equity-based crowdfunding platforms do not: the knowledge that each company available for investment has been thoroughly vetted by professional, experienced investors who are putting their own money at risk together with the crowd too.
Since launch it has helped people invest more than £4million in fast-growing British businesses. The minimum investment is £500, though the average amount invested is over £5,000. Individual angels have each invested an average of £140,000 per company.
The companies selling equity on the platform have ranged from the aircraft designer e-Go aeroplanes to the cloud-based jukebox Psonar and the makers of the world’s first urinal videogame, Captive Media. Angel investors have included industry heavyweights such asDavid Ryan, Peter Cowley and Hermann Hauser.
Gonçalo de Vasconcelos, founder and CEO, SyndicateRoom, comments: “When crowdfunding first arrived in Britain it was seen as the exotic preserve of a committed few. Now its simplicity and transparency are attracting ever more sophisticated investors looking for attractive returns.
“Our platform allows sophisticated investors to bypass the often opaque and expensive managed funds to invest directly in the businesses they like. We are proud to be FCA authorised, and thus held up to the same scrutiny and high standards as any other regulated investment.
“The difference is crowdfunding is a truly democratic form of investing. At SyndicateRoom we are determined to give sophisticated investors – large and small – the power to prosper by investing together with the top UK angel investors. Securing FCA authorisation is an important milestone for us on our mission to give our members access to the very same deals into which top UK private investors are putting their money.”