Sorry, Eli! Crowdfunder no longer allows four year olds to register as accredited investors
Last week I reported on the comical lack of verification required to sign up as an angel investor on Crowdfunder.com.
How comical? I was able to register Sarah’s four year old son, Eli, as an accredited investor, despite using his real date of birth (2011!), his real photo (dressed as a bee) and the job title “toddler...”
When I pointed this out to the company they did absolutely nothing for 24 hours, until I wrote about it here on Pando. Then they sent me a snippy email saying...
...and promptly closed Eli’s account.
Still, Crowdfunder may not have been able to say “thank you” to Eli for his help, but they have apparently taken his findings to heart. A return visit to the site today reveals a completely overhauled registration process.
Now anyone registering on the site as a minor is automatically flagged as “not verified,” no matter how they answer the self-accreditation questions. Those registering as accredited adults are now required to go through a secondary verification process, by linking their account to either a Facebook or LinkedIn profile. The new procedures cite “SEC requirements...”
And there’s more. Apparently Crowdfunder is busily combing through its existing investor database to ensure that everyone is compliant with the law.
Shortly after I spotted the new verification procedures, I received an email sent to one of the dummy accounts I registered while reporting my previous story. The email, sent from “Katie Talati, Investor Relations Manager” read:
My name is Katie and I’m part of our Investor Relations team at Crowdfunder.
You recently signed up for our platform and self-verified as an accredited investor.
I’d like to schedule a quick call to get to know more about your investing experience and interests. Feel free to pick the time that works best for you here:
The more we know about your interests, the more our platform can cater to you specifically and customize your experience while also showing you private Deal flow that other investors don’t have access to.
Katie Talati, Investor Relations Manager
Follow me @ Crowdfunder
Crowdfunder: Venture Capital, Crowdsourced
So there you have it. No more toddlers on Crowdfunder! Now if the company could just figure out a way to detect scammers and prevent them from listing provably bullshit medical products on the platform, it’d be almost perfect.
But, yunno, baby steps.
I've asked Crowdfunder for comment on their new registration and verification process but they haven't yet responded. I'll update this post if they do.