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And it's because of the points you made that most real investors will "blacklist" any company that has raised crowd equity.

However, it will be interesting to wait and see if someone (probably and accountant or lawyer) figures out a structure/vehicle that allows me utilize the positives of crowd equity while staying away from the negatives. EDIT: Maybe a crowd equity funded VC group...? Run by sophisticated investors.



It's false (at least here in the UK) that investors blacklist companies that have raised equity crowdfunding. The trend is going the other way: towards crowd equity rounds being anchored by venture funds and to VC co-investment.

See eg http://lcif.co and https://www.crowdcube.com/pg/not-just-the-crowd-1712

Re: edit, absolutely. Crowd investment into a portfolio / fund vehicle is a great idea. Likely to be more like a quant fund / index tracker though, rather than professionally managed -- because who wants to pay 3% annual fees. And what would you logically track? AIM or crowd equity platforms because they are your signal.


Isn't that just like a traditional investment bank?


Yes, but you and I don't really have the ability to put a portion of our savings into Andressen Horrowitz. At best our money ends up at a VC fund through a middle man, be it your brokerage house putting LOTS of clients money in or a work pension fund.




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