Things to know about investing in crowdfunding offerings.
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.
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.
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