QUOTE(prody @ Sep 30 2015, 04:31 PM)
I can see these risks for crowdfunding a relatively new company that mainly invests in overseas companies:
1 Risk that the company is more of a scam than an actual investment company (since they have no long track record, there are many scams around)
2 Risk that the investments they make are no good (since they have no long track record)
3 Currency risk (if the currency of the country they invest in appreciates compared to the Ringgit)
One more thing to note is that equity crowdfunding may or may not (usually may not) have a tenor. That means you can't sell your portion of equity until the company is listed or until you can find another person to take over from you. Because borrowers are mainly SMEs, it takes a very long time for them to be either listed or can be sold to someone else. So buyer beware! There also no saying that the company won't go bankrupt not from fraud but just bad management or internal/external economic issues.1 Risk that the company is more of a scam than an actual investment company (since they have no long track record, there are many scams around)
2 Risk that the investments they make are no good (since they have no long track record)
3 Currency risk (if the currency of the country they invest in appreciates compared to the Ringgit)
That is why some people prefer crowd lending instead or peer to peer lending. At least there is a tenor and your returns are fixed.