Here at Crowd for Angels we often get asked by investors what due diligence we carry out on the companies that raise funds on our platform.
As a company that is authorised and regulated by the Financial Conduct Authority (FCA), we have to comply with strict rules on how we conduct our business. But as an organisation we also take our ethical conduct seriously, going beyond the written regulations to ensure that companies pitching on our platform are offering a valid investment proposition to our members.
This means that apart from carrying out the required factual checks on areas such as identity, company accounts and the business plan, we also carry out more “soft” checks. We call every company which has applied to discuss their funding needs and we make every effort to meet with the directors and key staff in person prior to the raise. We have met with the directors from over 97% the companies which have pitched on our platform to talk to them in detail about the fundraising process. And while we don’t tell companies how to value their business we will let them know if their valuation is edging towards the expensive side.
We understand that our investors have put their trust in Crowd for Angels and we take seriously our responsibility to only offer financial products which meet our strict quality criteria. To read more about our due diligence process download the PDF below and find out what else we do when considering whether a company is right to put in front of our investors.
What Due Diligence We Carry OutCrowd for Angels (UK) Limited is a regulated crowdfunding platform that helps companies raise funds through the issue of Shares or Crowd Bonds.
If you have any questions or would like to discuss your needs further, please call one of team on 0207 437 2143.
Good to see more focus on due diligence
Transparent DD standards help everyone manage risk
As I prepare companies for pitching I’d appreciate knowing if your minimum requirements include spent criminal record DBS checks, past employer references, qualification certificates, company policies and plans to register future IP
thanks
clive
Thank you for your comment, Clive. As part of our checks, we will undertake employment references, qualification checks and checks on IP from third party sources where necessary. However, whilst we do check various resources and look into the history of an individual – we do not currently undertake a dedicated DBS check. This is something I can raise with our compliance team.
I hope this helps in your preparation.