Investbase - BIG disappointment. GPs are reviewing themselves. Don't trust it.
I'm really disappointed to write this. I really like platforms where we can share information on GPs in a public manner. It's absolutely not the only resource we should be using to vet sponsors and deals, but it's helpful to have access to experiences from other investors.
But recently I was disappointed by Investbase.
I found not one but TWO reviews written by GPs on their own firms ON THEIR HOME PAGE. What's worse is that GPs didn't disclose the relationship in their reviews and made it wrote the review as if the were the investors.
Despicable behavior on behalf of the GPs. Plus, it's banned by the FTC.
But also, that just makes me doubt the integrity of the platform. If I found 2 within minutes, how many fake reviews are scattered across the platform?
I already struggled trusting Investbase because they are owned by Cashflow Portal, which increases their subscription cost based on the amount of equity managed through their platform (so they have an obvious bias to help GPs raise more money). But letting GPs review themselves? Insane.
Don't market yourself as a verified review platform if you are obviously not even doing the bare minimum to verify!!!
So investors, beware of Investbase.
I'm also not above name shaming. And I think it's important to include the proof, so the screenshots are below. The GPs that I found who are reviewing themselves on Investbase are Iron Horse Energy Funds and Ryan & Francesca Byrne, MD.
I knew something was up as soon as I saw Courtney Moeller's review of her own firm because I'd spoken with her before. And Ryan Byrne's just stood our because of the name.
They are just small players, but if they can do it, can't anyone?
I don't think anyone wants to invest with a GP who would stoop that low.
I hope the FTC goes after these people because people use the information they find on these platforms to make very serious financial decisions. Misleading investors like this is such low behavior.
