Seagate CEO David Nye has joined the chorus of developers and investors urging the US government to take action against online real estate platforms.
Nye is an investor in real estate platform Crowdcube, which has raised $25m.
The site has also raised $10m from investors including Microsoft co-founder Bill Gates and former Facebook co-founders Mark Zuckerberg and Sheryl Sandberg.
Nope’s statement was published by the Washington Post on Wednesday.
Crowdcube has raised nearly $50m, according to the company’s SEC filing.
Its founder, Nick Lopatin, has previously spoken out about the importance of social media in facilitating a sustainable ecosystem for businesses.
Last year, he said that the lack of transparency and accountability around crowdfunding platforms in the US meant investors were “getting ripped off”.
He added that the rise of crowdfunding platforms like Crowdcube had given developers the opportunity to build “real estate ecosystems” that were more accountable and trustworthy.
Lopatin told the Post that he was concerned by Crowdcube’s decision to stop accepting new investors, and that the platform should be shut down immediately.
“They’re a really good company, and they’re in the right place at the right time,” he said.
“The fact that they’re just trying to keep it going, which is really irresponsible, is just really disappointing.”
Nye has previously voiced concerns about the lack to regulate crowdfunding platforms.
He said in September that he believed there were too many unregulated crowdfunding platforms operating in the United States, and the Federal Trade Commission should be able to act to stop them.
Nerve damage has been done to the industry by the failure of regulators to enforce the law and to enforce regulations, said Nye, who is also a co-author of the book, Real Estate: How To Save Your Dream, which details the rise and fall of real estate.
He told the newspaper: “You can’t build real estate ecosystems without regulators.
You can’t have a regulated real estate ecosystem without regulators.”
CrowdCube, which raised $75m in venture capital backing in October, has since started raising new money from investors, including Microsoft and venture capitalist David Meissner.