• Hubtas
  • Posts
  • Can You Sue Equity Crowdfunding Portals For Scams on their Platform?

Can You Sue Equity Crowdfunding Portals For Scams on their Platform?

We're about to find out...

January 30, 2024

We’re closing out the first month of the New Year, and so far, it’s been a pretty interesting start. The S&P500 has already hit an all-time high for the year, which might signal great things for the private markets. Valuations will likely start to rebound, and IPOs will ramp up this year.

Recent News

In a piece of major news within the equity crowdfunding world, the first FINRA arbitration action has been filed against an equity crowdfunding company, Crowdstreet. In short, this is a lawsuit alleging the portal misappropriated funds when dealing with a fraudulent issuer on their platform. Can investors recover funds from scams on equity crowdfunding platforms? Read about it below!

First Equity Crowdfunding Arbitration Claim Filed Against Crowdstreet As Investors Sit On $120 Million Of Losses from Real Estate Scams | Hubtas Media

CrowdStreet, a real estate crowdfunding firm, helped raise $63 million from two offerings for real estate syndicator, Nightingale. The raises were to purchase the Atlanta Financial Center and another Miami property. The issue? The buildings were never purchased, investors' money has largely disappeared, the project is in bankruptcy, and it could have been prevented

media.hubtas.com/2024/01/30/first-equity-crowdfunding-arbitration-claim-filed-against-crowdstreet-as-investors-sit-on-120-million-of-losses-from-real-estate-scams

Remember Wavemaker Labs? They were once one of the largest names in equity crowdfunding. Collectively, they raised tens of millions from a host of different ventures. Now? While Wavemaker Labs is now Vebu Labs, and technically still in business, many of their portfolio companies are not after years of silence. Read all about it here:

The Rise & Fall Of Wavemaker Labs: Piestro, Bobacino, 800 Degrees Go, Future Acres and More Shut Down After Raising Tens of Millions | Hubtas Media

Vebu Labs, formerly Wavemaker Labs, was once king of the equity crowdfunding space. Their portfolio companies raised tens of millions on Wefunder, StartEngine, SeedInvest, and Republic. They saw so much momentum that they partnered with DealMaker to start "WAX Invest," an equity crowdfunding platform dedicated to raising funds exclusively for Wavemaker Labs companies. They were

media.hubtas.com/2024/01/30/the-rise-fall-of-wavemaker-labs-piestro-bobacino-800-degrees-go-future-acres-and-more-shut-down-after-raising-tens-of-millions

Feature of the Week: Investing Ideas

If you look at the top right of Hubtas, you’ll see a tab that says “ideas.” Maybe you have checked it out, or maybe you haven’t but it’s a surprisingly powerful little tool.

As the name implies, it allows users to see a host of different startup investing ideas. This is great because it not only gives a ton of great startups to invest in, but it gives investors ideas on how they should form their investing thesis and what they should be thinking about while investing.

From low burn rate to popular industries or venture backed companies, you simply click on the tons of different categories and see a list of companies that fits your chosen criteria. It’s a simple version of our much more comprehensive screener, and a great tool for newer investors!

Get hundreds of data points, this feature and DOZENS more for only $10/month with Hubtas Premium.

Quant Score Deep Dive: ConsumerDirect

Equity Crowdfunding is full of rejects, right? Nothing but bottom-of-the-barrel companies that can’t raise from venture capital. It’s donations…

Thankfully, it’s pretty easy to combat that narrative when you have companies like ConsumerDirect raising on StartEngine. The company had $70 million in revenue in 2022 and recently released tentative numbers that they did $91 Million in 2023. This includes profitable in 2021 and 2022 by a whopping $6.3 and $1.1 million, respectively.

The company hasn’t raised any venture capital but does have 5 registered patents. With a valuation of $151 million, and $90 million in revenue, the company stands out, especially if you’re into FinTech companies.

Want to see the quant score of other companies? Create a FREE Hubtas Account.

Beyond The Form C

If you missed it, in our latest Beyond the Form C interview, we talked with Brian Iverson of Envirobon. Check out the full interview here:

Revolutionizing Building: Where Construction Meets Innovation

Meet Brian of Envirobon

hubtas.beehiiv.com/p/envirobon

If you love Hubtas, share it with other investors!

Your friends, family, colleagues can all benefit from having their own personal investment analyst! Whether they are a first-time investor or a seasoned investor, we have the tools for all.