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Growth Capital Ventures now has direct authorisation from the FCA
GrowthFunders, has reached a huge milestone
At the very beginning of our GrowthFunders journey, we set ourselves a list of goals. This list included the soft-launch of the platform, the official launch, our first successful close out of a listed pitch, the first syndicated investment between online angels and an institutional investor, making our team bigger, and successfully closing out our own funding round for Growth Capital Ventures - all of which we’ve proudly achieved over the last year and a half.
One of the biggest goals we set ourselves was to become directly authorised by the UK Financial Conduct Authority (FCA).
The FCA is the body which regulates all financial activity in the UK, which includes the manner in which shares in companies are sold to the public (the crowd, online angels, angel networks, institutional investors).
We’re excited to bring you the news that we have passed this exciting milestone in the GrowthFunders journey...
What Does This Mean
This is a fantastic achievement for us, and comes after an 18 month application process and waiting period. Although that sounds like quite a while, it took other platforms over two years to gain direct authorisation.
Since our launch in March 2014, we have been operating as appointed representatives of FCA-authorised investment manager, Linear Investments, which meant that we were able to operate within the permissions that they held.
By its very nature, equity crowdfunding invites the “crowd” to get involved. However, an early stage investment strategy can bring risk as well as the reward of financial returns, which is something it is imperative people understand, prior to investing.
Equity crowdfunding is made up of trust, honesty, transparency, and high quality opportunities. If any of those qualities are missing, then the practise of equity crowdfunding faces challenges.
Here at Growth Capital Ventures, we pride ourselves on having these qualities. However, not everyone follows the rules to a T, which is why a regulatory body, such as the FCA, is in place.
One of the main purposes of financial regulation in any country is to control the manner in which shares of companies are sold to the public.
Participation in the capital markets by the masses is a good thing: it allows capital to be allocated to its most profitable uses, thereby creating growth and jobs for society and inflation-beating (and occasionally lifestyle-changing) returns for investors.
With equity crowdfunding platforms, financial regulations are there to control the manner in which shares in startup, early stage, and more established business, are sold to the public.
As well as this, they serve to strike a balance between allowing the alternative finance marketplace to function freely whilst ensuring that everyone plays by an agreed set of rules.
These rules are in place to protect both entrepreneurs and investors, as well as helping to maintain the integrity of the sector as a whole.
Equity crowdfunding, and the alternative finance sector as a whole, has had (and will continue to have) an extremely positive impact on growth of all kinds in the UK. For example, the economy reported growth, as well as the formation of a record number of startups, which were able raise the capital they needed in order to launch and begin their potentially-high growth journey.
Our development team have been working hard on a new-look website, which we’ll be unveiling very shortly. We can’t wait for you to see it and let us know what you think of the changes.
There’s also another change we’ll be making due to our direct authorisation which concerns the signup process.
Soon, it’ll be even simpler than ever to become a GrowthFunders member because we now have retail permissions.