For Investors: Investment Risks
The opportunities listed on MoolaPitch.com are NOT registered securities. They are private placements that are explicitly exempt from registration requirements. They carry risks that are significantly different than exchange traded public securities or mutual fund shares. All exempt Wisconsin crowdfunding offers are required to file a disclosure document that discusses the risks associated with the particular offering. You will find that document along with other descriptive documents in the detail section of a particular offering. All documents should be thoroughly reviewed before making any investment with particular attention to the risks inherent with a particular investment. General risks in any private placement may include:
You may lose some or all the value of your investment.
MoolaPitch.com listings are private placements by start-ups, early-stage and small businesses. Many small businesses fail due to a variety of reasons–management inexperience, poor products, too much growth, too little growth and many other reasons. You need to be able to bear the loss of your investment. Do not invest more than you can afford to lose.
The equity or debt conveyed in these offerings is illiquid.
These securities are not registered and there is no exchange where they are formally listed. Absent an exchange, it may be difficult to find a buyer if you wish to sell your securities. Furthermore, these securities generally will have a minimum holding period during which ownership cannot be transferred. These factors severely limit your ability to sell your investment.
Periodic payments are not guaranteed.
Periodic payments such as interest or principal payments are not guaranteed. An issuing Company may not have the resources or ability to make such payments. Furthermore, other financing agreements may restrict the ability of a Company to make required payments at a particular time. You should not make an investment in instruments with such payments unless you can bear the risk of not receiving such payments.
Wisconsin statutes requirements are not the same as federal securities requirements.
Wisconsin does require quarterly reports of exempt crowdfunding offerings; however, federal regulations are more extensive than the requirements for exempt Wisconsin offerings
The transaction fees associated with private placements tend to be relatively high.
Most private placements will have one or more fees associated with the raise from lawyers, accountants, marketing firms, investment bankers, and/or listing portals such as MoolaPitch.com. Generally the fees associated with a private placement will be higher on a percentage basis than that of a public offering. . Review the “use of funds” section of the offering to determine the fees associated with a particular offering.
In general, you should review all disclosure and offering materials carefully. Be mindful of the risks that investment in the offering conveys. Discuss the opportunity, the documents and the opportunity’s associated risks with your investment, legal and tax advisors before investing for an independent view of the opportunity. Remember that past performance of an investment and associated principals may not be indicative of future results.