We strongly encourage all investors to consult with legal, tax, investment, or other professionals before making any investment, and to thoroughly review all disclosures and documents included within any investment materials. If uncertain, refrain from investing.
This guide aims to enlighten potential investors about the risks involved when purchasing securities from startups, emerging private companies, and public entities. Make sure you go through this crucial information before starting your registration process on Investor Meetup and before making any investment commitments on the Investor Meetup platform.
Investor Meetup, operated by Investor Data Strategies LLC, is a platform that links potential investors with businesses seeking growth capital. On our online platform, businesses aiming for growth equity can present their company details, fundraising plans, and value proposition. They can seek feedback and verify interest from potential investors and industry advisors, which can be utilized to refine their fundraising pitches and presentations. This happens before these companies file their offering documentation with the Securities and Exchange Commission (SEC) under Regulation A+ (Reg A+). Reg A+ permits investors from varied financial backgrounds and investment experiences to participate in capital market investments. Investor Meetup also aids companies in their Reg D 506C offerings for accredited investors, and Reg S offerings for non-US investors.
Investor Meetup operates as a platform that unites businesses seeking growth advice and capital, individuals, and businesses seeking investment opportunities, and advisors aiming to support expanding companies. Bringing all these entities together on one platform encourages a business and financial opportunity environment. Companies seeking feedback can share their business information and fundraising targets on the platform for others to evaluate, but this does not imply that a specific company has agreed to complete an offering.
Investor Meetup does not act as a broker-dealer or placement agent. Investor Meetup never offers, brokers, advises, purchases, sells, or engages in any transactions involving securities regulated by the SEC or federal or state law. Investor Meetup doesn’t accept, hold, or transfer cash or securities. It doesn’t guarantee a company’s fundraising level or that any intended offering will meet the requirements of applicable federal and state securities laws.
Investor Meetup does not offer personal financial advice. It does not provide personal financial advice, loans, banking services, consumer credit ratings, credit decisions, financial products, brokerage accounts, insurance, tax advice, legal advice, or any financial or legal services of any kind. Even if a company or investment opportunity is featured on the platform, unless explicitly stated, Investor Meetup does not endorse it.
Investor Meetup offers no guarantees to any user. All users of the Platform are responsible for their activities, including but not limited to registration, sharing information about their Company, and any proposed financing, reserving an investment, making an investment, or similar actions.
Every investor is encouraged to consult with a legal, tax, investment, or another professional before making an investment and to carefully review all the disclosures and documents provided as part of any offering materials.
Before registering on Investor Meetup and making any investment, it’s suggested to consider the risks associated with crowdfunded securities offerings and determine whether such an investment is appropriate. It’s crucial to understand that you could lose your entire investment.
Investor Meetup and its employees are prohibited from offering advice about any offering posted on Investor Meetup or recommending any investment. Therefore, the decision to invest must be based solely on your own individual evaluation and consideration of the risks involved in a particular investment opportunity posted on Investor Meetup.
When making an investment in a company on Investor Meetup, it’s necessary to consider the associated risks. Investing in private/early-stage companies is highly risky and speculative, and only those who can afford to lose their entire investment should invest. Before making any investment decision, it’s essential to carefully consider the risks associated with the investment type, security, and business. Potential investors acknowledge that they are responsible for conducting their own legal, accounting, and other due diligence reviews of the investment opportunities posted on Investor Meetup.
Principal risk: Investing in private companies and startups risks the entire amount of your investment. The company may fail outright, or you may be unable to sell the stock you own in the company, leading to a potential total loss of your investment. Only invest funds that you can afford to lose completely.
Returns risk: The return on investment, if any, is highly variable and is not guaranteed. Some private companies and startups may succeed and generate substantial returns, while many others won’t be successful and may only produce minor returns, if any at all. Any returns you may receive will vary in amount, frequency, and timing. Do not invest any funds in which you need a regular, predictable, and/or stable return.
Returns delay: Returns, if any, could take several or many years to materialize. Most companies take between five to seven years to generate any investment return, if at all. It could also take many years before you will know if an investment will yield any return. Do not invest any funds if you need a return within a particular timeframe.
Liquidity risk: Selling your securities may prove to be difficult. Startup investments are privately-held companies and aren’t traded on a public stock exchange. Furthermore, there’s currently no readily available secondary market for private buyers to purchase your securities. Moreover, there may be restrictions on the resale of securities you purchase and your ability to transfer them. Do not invest funds if you need the ability to withdraw, cash out, or liquidate within a fixed period.
Instrument risk: You might be investing in preferred equity, common equity, or convertible notes. These securities instruments have varying inherent risks due to their structure. Make sure you understand the nature of the securities instrument in which you are investing.
Dilution: Startups and early-stage companies may need to raise additional capital in the future. When these new investors invest in the company, they might receive newly-issued securities. These new securities will dilute the percentage ownership that you have in the business.
Minority stake: As a smaller shareholder in the business, you may have fewer voting rights or ability to influence the company’s direction than larger investors. This could mean that your securities are treated less favorably than larger security holders.
Valuation risk: Unlike publicly-traded companies that are valued publicly through market-driven stock prices, the valuation of private companies, particularly startups, is difficult to assess.
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