Hopefully there is stricter regulation in the US in regard to restricting valuation abuses. Unfortunately in the UK a number of my friends have invested non-tri

Hopefully there is stricter regulation in the US in regard to restricting valuation abuses. Unfortunately in the UK a number of my friends have invested non-trivial amounts into crowdfunded equity. When I looked into them in detail, it was clear that not only were the valuations completely out of whack but that the T&Cs were equally ridiculous. Most of them will either lose all their money or be stuck with equity that they paid far too much for and more importantly, can't sell. Be very, very careful and take the time to read and understand all of the provided legal documents. If it is anything like the UK offerings, it would be wise to stay away. edit: Just for example, many UK crowd-funding offerings will have had investment from VCs etc the week/month before at 1x, the price being put forward to the public 5x-15x.