Here are some important notes to know before investing.
Investing is risky. Investing in early-stage companies is a risky business. You should be in a financial condition where you can comfortably afford to lose your entire investment. You should always be aware of your personal investment limits.
Do your research. Although we collect information on each company we list, you must rely on your own examination of the company, the terms of the offering, and the risks involved to make your investment decision. You can review the offering and information regarding the company on their offering page.
Canceling your investment. You may cancel your investment until 48 hours before the deadline of an offering. If you create an investment commitment within this time period, you forfeit the ability to withdraw the commitment. If there is a material change to the terms of this offering, we’ll provide notification, and you must confirm your commitment within five days or it will be automatically withdrawn.
Reselling shares is rare. It may be difficult to resell your shares. You may not transfer these securities until one year after they are issued, except under very specific circumstances. Even after the one-year holding period, these securities may be difficult to resell.
Returns on your investment. These companies may be years away from providing a return on investment, if ever. During that time, your ownership may be diluted, and your voting power may be limited.
Ongoing reporting. Companies are required by the SEC to file an annual report on their financial condition unless certain conditions are met. After the closing of an offering, there may not be an ongoing relationship between the company and Netcapital.