Due diligence for equity crowdfunding

Retail investors buying equity in crowdfunding offerings face structural information asymmetry: the pitch is written and financed by the issuer, and independent analysis is rare. CrowdDiligence publishes a structured due-diligence framework, applied by named DD Leads and scored collaboratively by the community, that produces a citable public report per offering. This page introduces the framework, the regulatory context and the practical output.

The framework

Every project is built from a template of weighted topics — Team, Market, Financials, Legal, Product, Operations, Risk, Regulation, Technology — whose weight percentages must sum to 100. Under each topic the DD Lead lists specific findings that a rational retail investor should evaluate before committing capital. Community members score each finding on a 0-5 scale.

Bias management

Members flagged as biased on a specific project (typically employees or affiliates of the issuer) have their weight reduced by 75%. AI-Assisted drafts contribute at 10% weight until a human DD Lead verifies them. The full formula and reasoning are documented in the white paper.

Regulatory context

CrowdDiligence covers offerings under two regulatory regimes: the EU Crowdfunding Regulation (ECSPR, Regulation (EU) 2020/1503) governing European equity and lending crowdfunding, and the US JOBS Act Title III (SEC Regulation Crowdfunding) governing US retail equity offerings up to $5M annually. See /sec-reg-cf for details on our US Reg CF coverage.