Round One wants all users to be aware of specific risks related to Equity Crowdfunding Investments.
In order to maintain a fair and objective community, the Intermediary is prohibited from providing investment advice or from specific endorsement. This list of risk factors outlined below is not a comprehensive document on risks to investments listed on this platform. Investors must perform their own due diligence and exercise discretion and good judgment in participating in Crowdfunding Campaigns.
Your decision to invest in a Crowdfunding Campaign is a personal investment decision made by you. No responsibility for the consequences of that decision is accepted by Round One or by any of its directors, agents, employees, or other members. ✩ Investing in our platform does not involve a regular return on your investment.
Your choice to invest in our Platform should at the very least, consider the following:
Business Risk 📊
Investors must be aware that any business or venture, especially high-growth, startup, or innovative companies, carry with it an element of risk of failure. There is a substantial risk of loss of your entire invested capital when participating in equity crowdfunding ventures.
Business Risk is only the general term for all risks associated with business failure. Business Risk may also include factors external to the organization and management, such as country and economic risk. Issuer’s success is heavily dependent upon the competency of the issuer’s directors and officers.
Management Risk 🛠
Related to Business Risk, - Round One makes no warranties that an issuer’s management team will successfully execute all business plans.
Equity Investment Risk 📉
Equity Crowdfunding Investments are only one form of a diverse array of investments and are considered highly speculative, with a low likelihood of consistent revenue, profitability, and dividend payment. The Intermediary cannot guarantee protections against loss of capital due to the valuation of your investments.
Past & Future Performance 📅
Past performance is not a reliable indicator of future performance. You should not rely on any past performance as a guarantee of future investment performance. Forecasts are not a reliable indicator of future performance.
Minority Shareholder Risk 🍰
Most investors will likely be considered minority shareholders in any Equity Crowdfunding Issuer and may be negatively impacted by this status. As a minority shareholder, you will generally be a passive investor and typically will not have the right or ability to influence the direction of the company. ✩ While the Platform provides as much transparency as it is able to, the Intermediary cannot guarantee protections against dilution risk, management risk, and other provisions of the share purchase agreement of an Issuer.
Dilution Risk 🏊
Issuers who raise funds through Round One may offer securities with no protections against dilution. You may not have the opportunity to buy additional shares during a subsequent fundraising round so that you can maintain or preserve your original proportionate ownership stake. Dilution affects shareholders who are unable to buy any of the new shares being issued in a subsequent funding round and as a result, your proportionate shareholding of the company may be reduced, or ‘diluted’. Your proportionate ownership stake can have an effect on your ability to exercise voting, dividends and value of shareholding.
Liquidity Risk 🏄♂
Investors must be aware that there is no current secondary market for securities issued on this Platform. The ability to divest is significantly limited and there could be difficulty in selling your investment at a reasonable price or any price at all in the future. ✩ While the Platform may facilitate the transfer of assets related to a divestment, the Platform and Intermediary are unable to assist in finding buyers for primary-share-investors once a Campaign has concluded. Furthermore, the Intermediary does not guarantee divestments will be sold at fair value in any transaction subsequent to an Issuer’s initial Campaign.
Insolvency Risk 🧊
The issuer may become temporarily or permanently insolvent, resulting in its incapacity to repay the interest or redeem the debt instrument. The solvency of an issuer may change due to one or more of a range of factors including the issuing company, the issuer’s economic sector and/or the political and economic status of the countries concerned. The deterioration of the issuer’s solvency will influence the price of the securities that it issues.
Crowdfunding investments carry significant risks. The risk of loss of investment is substantial due but not limited to risks indicated on this page. Investors must understand and appreciate the risks associated with early stage, growth focused, and crowdfunding securities.
Such high risk securities must be duly considered and are only a portion of a well-diversified portfolio of investments that may include less risky assets such as cash, government securities, insurance products, and shares of listed company stock. Please take time to review and understand this document in its entirety.
In making a determination of appropriateness and suitability, Investors shall consider the relationship between risk and return, as well as their own investment objectives, goals, time horizons, and needs for retirement or estate planning. No representations are made regarding the suitability of investments displayed on the Round One platform.