Possible consequences of the Seedmatch ruling for the industry – The valuation

Interview with lawyer Kerstin Bontschev

Question: Ms. Bontschev, the final judgment against Seedmatch is an important milestone for injured investors. What does this ruling mean for you?

Answer: The ruling is a clear signal to Seedmatch and other crowdfunding platforms that they must take their information obligations towards investors seriously. If they do not do this, they will face claims for damages.

For the affected investors, the ruling means that they are now entitled to compensation. This claim is directed against Seedmatch and may relate to various damages, such as loss of invested capital, loss of interest or loss of profits.

Question: What are the chances that investors will get their money back?

Answer: The chances are definitely good. Seedmatch is a large platform with a high net worth. In addition, the judgment is final, meaning that it can no longer be appealed.

However, the amount of damages will depend on the specific circumstances of the individual case. In some cases it may be difficult to quantify the damage. In these cases, it may make sense to hire a lawyer to enforce the investors’ claims.

Question: What consequences does the ruling have for other crowdfunding platforms?

Answer: The ruling will certainly lead to other crowdfunding platforms paying more attention to their information obligations towards investors. In the future, you will have to think more carefully about what information you have to provide to investors before making an investment.

The ruling could also lead to investors becoming more cautious when investing in crowdfunding projects. In the future, you will be better informed and weigh up the risks of an investment better.

Question: Are there any other recent developments in crowdfunding that you would like to comment on?

Answer: Yes, there are several other developments that are important for investors. On the one hand, the number of failed crowdfunding projects has increased significantly in recent years. This is partly because more and more start-ups are raising money through crowdfunding.

On the other hand, there are more and more cases in which investors assert claims for damages against crowdfunding platforms. This is usually the case if the platform has not adequately informed investors about the risks of an investment.

Investors should be aware of these risks and obtain detailed information before making an investment. You should also consider whether you can bear the risks of an investment.

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