So I'm looking into a company that is crowdfunding. It's early days so far but all seems legit there are a lot of disclaimers etc in their DD spiel warning of dilution/takeover and no voting rights etc as an ordinary investor.
All pretty standard stuff taken for granted in public listed companies I guess but I certainly am taking these warnings a lot more seriously in a crowd funding scenario. My biggest concerns are
- there is no watchdog (asx or equivelant)
- it's very hard or impossible to sell any shares you buy (the price the company may buy them back could be a joke)
- unless the company is very proactive in Comms you really don't know what is going on financially or true progress in the project/product... in which case you still have to believe the entity that has interest in everything smelling like roses.
I'm rambling but anyone had experience investing in crowdfunding? Good or bad experiences
