Crowdfunding equity firms could be hit by new regulation laws coming into play early next year.
The Financial Conduct Authority (FCA) is due to regulate crowdfunding starting from the first few months of 2014, it announced at the end of last week.
The regulatory authority, which replaced the Financial Services Authority in the wake of the economic crisis, has published a consultation paper explaining its proposed restrictions on crowdfunding.
The plans would mean some products and companies listed on websites like Kickstarter, or equity crowdfunding platforms like Seedrs and Crowdcube, may have a harder time finding investment.
FCA director of policy and research, Christopher Woolard, said: "Consumers need to be clear on what they're getting into and what the risks of crowdfunding are.
"Our rules provide this clarity and extra protection for consumers, balanced by a desire to ensure firms and individuals continue to have access to this innovative source of funding."
The FCA has mooted new rules for loan-based crowdfunding, the key proposals being that platforms must not downplay risks and must have systems in place so that, if the platform collapses, investors do not lose out.
Advertising must not be misleading, while people will be barred from investing less than £50,000.
Investment-based crowdfunding platforms, which are already covered by FCA guidelines, will still face new, "tailored" proposals as the body tries to limit risk to investors. They include suggested new rules that cash can be sought only from experienced investors or investors who will commit no more than 10% of their portfolio. Platforms will also have a responsibility to non-advised investors, assessing the "appropriateness" of their investment.
But Richard Brockbank, co-founder of Investing Zone, called the announcements "patronising".
"We do not agree that participation in equity crowdfunding, and the fantastic tax breaks that go with it, should be limited to high net worth or sophisticated investors," he said in a statement.
"With regards to limiting the amount that can be invested, we feel that this could be patronising to investors who can demonstrate that they know what they're doing but just don't happen to be rich," he added.
However, Brockbank agreed that it is the responsibility of investment platforms to only admit investors who understand the risks involved, and to ensure all listings are sensible.
The FCA will now await feedback on its proposals before continuing.