Before You Invest

It is your responsibility to pick the companies you believe in. Equity Portal does not and cannot recommend or endorse any company or offering. You should not invest unless you can afford to lose your entire investment—your investment won’t be liquid or freely tradeable, so it is important to invest what you are comfortable losing.

Investing is risky, and many investments are likely to lose value over time. Never invest more than you’re comfortable losing and never expect future liquidity or the right to a return.

Diversify

Spread your investments across multiple companies and asset classes to diversify financial risk.

Research
  • All companies that raise on Equity Portal provide documents to the SEC. You can always find more information about each company on the Form C link on their campaign page or search the SEC’s EDGAR database.
  • Read the risk disclosures that are posted on each campaign.
  • The discussion forum will have comments and questions in each campaign.
  • Please pay attention to any dealings between the company and its investors, officers, directors, employees, or founders.
Review the Deal Terms

Review the terms of each deal carefully, including rights associated with the offered securities. You will most likely not have the same rights as earlier investors or accredited investors (including voting and information rights). Voting Rights can get diluted as well.

See also: Deal terms.

Rights

Crowdfunding offerings might offer fewer rights than other investment types. For example, SAFE investors typically do not have any information or voting rights. Your rights may vary from company to company, and you must review and understand them before you invest.

See also: Investment Instruments

Important Knowledge

1. Investing is risky. See risks for more information. 

2. Entrepreneur past performance does not guarantee future success in a new company

3. Companies change plans constantly. It is important to understand that you have no say in these changes.

4. Your stake might be diluted. As companies continue to raise money, your ownership stake automatically becomes diluted. 

  • Before You Invest