Earlier this year SME director Choy Peiyi was sentenced to 10 years in jail for creating fake invoices that allowed her business, Vanguard Project Management, to raise more than S$25 via the Singapore-based crowdfunding site Capital Springboard. Users of the Capital Springboard platform that invested in Peiyi’s company lost nearly S$7 million in total.
Choose the Right Crowdfunding Platform
If this example worries you about investing in crowdfunding campaigns, you may be reassured to know that not all crowdfunding platforms pose this much risk. In fact, some platforms have incredibly low default rates, which highlights the need to conduct thorough research of the best platforms before signing up for an account. For example, Funding Societies has the lowest default rate of any platform in Singapore at 1.12%.
In addition to comparing default rate statistics, it is important to compare each platform’s advertised expected returns. This is …