Things to know about investing in crowdfunding offerings.
Risk of Investing
Investing in early-stage businesses is very risky. Most early-stage businesses fail. You should only invest an amount you can afford to lose completely without changing your lifestyle. Learn more about Risk and Additional Risk.
You can cancel your investment up to 48 hours before the deal deadline. After that, your investment will be final, and you will not be able to get your money back.
You will not be able to sell, trade, or transfer ownership of your investment for the 12 months following the investment. Even after 12 months, you may not be able to find anyone to buy your share of a company.
Crowdfunding law limits how much you can invest per year. These limits are based on your income and net worth. Nobody can invest more than $100,000 in a year.
Crowdfunding investing is highly speculative and every investment may result in a loss. By investing small amounts across multiple companies, you can reduce your risk compared to a large investment in a single company.
Do your own research. Read the documents provided by each company you plan on investing in. Get independent legal, accounting, financial advice. If you have any questions or need more information, ask the company.
Investing in startups and other private companies is highly speculative and could result in the complete loss of the investment. In addition, you will not be able to resell securities acquired through Crowdfunding for a period of one year, subject to certain limited exceptions, including sales back to the issuer, to accredited investors, to family members under certain circumstances (i.e. death or divorce). However, even after the restricted period, there is no guarantee that there will be a market for the securities.
Equity Crowdfunding is the online offering of a startup or private company’s securities for investment. Title III of the Jumpstart Our Business Startups (JOBS) Act permits anyone to invest in these securities offerings up to certain investment limitations. These crowdfunding investments are made directly through the crowdfunding platforms, which are acting as a registered crowdfunding website, and investors may participate in these offerings by investing directly through the crowdfunding platforms’ website. Investors who are interested in participating need to carefully consider whether investing in crowdfunding offerings is appropriate for them, meaning that each investor has the risk tolerance to invest in an offering that involves a high level of risk and that the investor can sustain the loss of some or all of his or her investment.
Important things to know about investment in our network platforms companies.
In consideration of the breadth and depth of information required to make informed decisions regarding the securities offered via crowdfunding platforms that can be viewed on the website, we encourage investors to consult with an investment advisor.
Every investor registered on this site is required to read and review this investor education section regarding the investment process . In addition to the previous overview & risk consideration sections, each registered investor must acknowledge and affirm the following eight criteria for participation:
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