How it Works

What Securities Are Offered and

What Are Their Risks?

Equity Securities

An equity security, such as the common or preferred stock of a company, makes you a joint owner of that company. As an owner, you have the right to share in any profit distributions and also share in the company’s value appreciation. There are, however, some risks involved with holding equity, including but not limited to:

Loss of your investment: if a company dissolves, you are paid after all the creditors, meaning there may not be any money left to pay investors after debts have been paid. Thus, you can potentially lose your entire investment
No dividends: an issuer might not plan to issue dividends. Additionally, a business might not generate enough profit to issue dividends
Subordination to creditors: in the event of bankruptcy, creditors are paid first and can go after a company’s assets until debts are satisfied. As an investor, you are paid last, meaning there might not be any money left to pay you and other investors
You may not be able to sell the securities: highly illiquid securities may not find any secondary market on which to be sold. Additionally, securities might have other restrictions that prevent you from transferring them to another investor

Debt Securities

Like promissory notes and bonds, allow you to be paid before equity investors in the event of the company’s bankruptcy. A debt based offering is often term loans. These loans can pay any amount of interest or not pay an interest. Many different structures for debt securities exist. You should therefore strongly consider learning about a particular security’s risks before investing. Some risks associated with debt securities include:

Repayments and payments are not guaranteed: while you, as a creditor, have payment priority if a company dissolves, a company may simply not have enough money to pay its debts
No third party credit ratings: credit ratings are designed to help investors gauge the risks of a debt security. Securities on our Portal might not be rated by rating agencies such as Moody’s and Standard & Poor’s, leaving investors with little to no objective measure to judge the company’s creditworthiness
Interest rate might not adequately compensate your risks: chances are that the interest you will earn does not adequately compensate the level of risk you are taking
Lack of security: a promissory note may or may not be secured by property, such as an interest in real estate or equity

HOW TO INVEST

STEP 1

SELECT YOUR INVESTMENT

Browse the investment opportunities listed on our site and choose the offering. We perform thorough due diligence and are highly selective in the companies we choose to work with. We vet the management teams of these companies and conduct background checks, due diligence, and other methods required by our group.

STEP 2

EMAIL REGISTRATION

Once you have selected an investment offering you would like to participate in, complete the free registration by clicking on the login/signup button and providing us with your name and email address. Create a profile and once your email address is verified, you will be able to start investing in our offerings.

STEP 3

DUE DILIGENCE

Once you have become a registered member of our site, you will have access to the documents related to our offerings, including the Private Placement Memorandum, information regarding the management team(s), along with historical and projected financial information. We recommend you to consult with your advisors to determine whether the investment is right for you.

STEP 4

INVEST

Once you are ready to invest, you will need to be qualified and approved by completing a thorough registration process, which includes accreditation and compliance checks. Once your eligibility is confirmed, you can execute the Subscription Agreement digitally by signing online.

STEP 5

FUND YOUR INVESTMENT

Once you transfer your funds from your source bank account, it will be placed in an independent escrow account. A fund administrator will verify your application and then release the funds to the investment.