Investing in exempt market or private securities, such as those offered through Togetherise, carries inherent risks. Investors should understand that higher risks often correlate with higher potential returns. Below are the primary risks associated with these investments:
- Risk of Loss: Investors may lose part or all of their investment if the company fails to generate sufficient revenue or ceases operations before completing repayments.
- Liquidity Risk: There is no public marketplace or exchange for reselling private securities. Investors should be prepared to hold their investments for the entire term.
- Lack of Information: While companies provide periodic progress reports, information is generally limited to what is disclosed in the Offering Document and subsequent updates.
- Investment Risk: Risks vary depending on the type of security offered and the terms outlined in the Offering Document.
- Issuer Risk: Risks specific to the financial health, management, and operational stability of the issuing company.
- Industry Risk: Risks related to the broader industry in which the issuing company operates, such as economic trends, competition, or regulatory changes.
It’s crucial for investors to thoroughly review the Offering Document for each opportunity to understand these risks and assess their tolerance before committing funds.
