Posted on 22nd July, 2015
Posted on 22nd July, 2015
by James Codling
Why we tell our investors their portfolios are performing better than average
This week Alt-Fi ran an interesting article entitled “Crowdfunded companies are doing better than average – but why don’t Equity Crowdfunding Platforms tell us this?” It’s a good read and draws out some food for thought around the transparency of a lot of crowdfunding sites, particularly around the lack of data provided to investors on how their portfolio is performing.
As a professional investor, I understand the frustration and uncertainty that comes from not having a full overview of all your finances. I took a look at the market and decided there was a real gap in making angel-style investing more accessible and affordable. That’s why I co-founded VentureFounders, with investors in mind.
One of my key stipulations for the platform was to by make the whole process of investing more straightforward and for this clarity to continue past the point of the fundraise closing – something that is lacking on other platforms.
VentureFounders is one of only two platforms in the UK to operate a nominee system where we are able to ensure the economic interests of our investors and receive information directly from our investment opportunities. This information feeds into our sophisticated profile monitoring tools so that our investors can directly access all the vital information on the performance of their deals, including the latest financials and news on the companies in their portfolio.
I believe we are the only platform to offer investors this level of transparency and support, both via our platform and through our team of highly experienced investment professionals.
Alt-Fi also touched on how the companies are performing well, but that this is over the relatively short period that crowdfunding has been popular. It’s important to remember that when investing in growth companies the risks are high – inevitably at some point some businesses will dissolve before they exit – so a strong, varied investor portfolio is needed.
VentureFounders has strict investment criteria. All the companies featured on VentureFounders have gone through a rigorous due diligence process and have passed the proof of concept stage, already generating revenue. This is by no means any guarantee that they will generate returns in the future, but I believe that by taking these additional steps to curate and present investors with the businesses that we would invest in ourselves, we are able to better judge the true investment opportunity for companies that will be scalable and high growth businesses.