Here are some of the Crowdfunding warning issued by the FSA:
-Firstly, you could end up losing all of the money you invest as most start-ups fail.
-Secondly, dividends are rarely issued and your share of the project could diminish as more crowdfunders invest.
-Thirdly, there is also the time taken to generate any return, which could be considerable.
-Fourth , there is the issue of fund ‘illiquidity’, which means that getting cash back for the shares such as by selling them may prove nigh on impossible.
-Fifth, says the FSA is the ever present danger of fraud.