Just over six months since it launched, the equity crowdfunding platform SyndicateRoom has become only the third of its kind to be directly authorised by the Financial Conduct Authority (FCA).
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.
The difference is SyndicateRoom invites its members to invest only in companies which are also receiving investment from professional investors.
Since launch it has helped people invest more than £4 million 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.
Gonçalo de Vasconcelos, founder and CEO, SyndicateRoom, said: “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.”