Is it risky to invest in private companies, particularly start-up and early stage?

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Yes, investing in early stage companies is highly speculative (very risky). Private securities and early stage companies have a high failure rate so you must be able to afford the complete loss of your investment without a change to your lifestyle. Early stage private placement investments are NOT bank deposits (and thus are NOT FDIC insured by the FDIC or by any other federal government agency), they are NOT guaranteed, and may lose ALL or some value.

Although the offering documents (Form C) are filed with the SEC, neither the SEC nor any other federal or state securities commission or regulatory authority has recommended or approved any investment or the accuracy or completeness of any due diligence or the information or materials provided through our network crowdfunding portals. Investors must be able to afford the loss of their entire investment without a change in their lifestyle.

Before investing, you are strongly advised to review the following to learn more about risks:

1) SEC – Investor Bulletin: Crowdfunding (Updated: February 16, 2016)
2) FINRA – For Investors: Education Is Key to Protection
3) Crowdfunding and the JOBS Act: What Investors Should Know


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