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Is is time to side with venture capitalists on this innovative approach to crowdfunding?

Crowdfunding has had more than its fair share of bad publicity with accusations that the sector is amateurish, unregulated and taking advantage of private-investor goodwill. But the latest variant on the crowdfunding theme, the Syndicate Room, is attempting to bring a little more business savvy to this overpopulated sector. The Syndicate Room, the first of its type in the world, asks investors to put their money into companies which have already received substantial financial injections from professional business angels. In effect, investors are given the chance to piggy-back on dragons’ den style professional investors, who have already piled in the cash. “Much of crowdfunding is about small amounts of cash to support what I call social enterprise. The syndicate room is different because it is all about using the business know-how and due diligence of the professional class of large-scale private investors,” Goncalo de Vasconcelos, the founder and ceo of Syndicate Room said. At £500, minimum investments are higher than crowdfunding sites, which can start at £10, but in return investors are treated in the same way as the predominant angel investor, who has a minimum 25 per cent of the investment. “Investors through the Syndicate Room get exactly the […]

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