🧭 Crowdfunding 101: A Guide for New Investors
Crowdfunding allows individuals like you to invest in early-stage companies by purchasing securities (like shares) online. It’s an exciting way to support startups and participate in their potential growth — but it’s also important to understand the process, risks, and your responsibilities as an investor.
This guide will walk you through what to expect and how to approach investing through a crowdfunding platform like DealMaker.
📌 What Is Investment Crowdfunding?
Investment crowdfunding is a method of raising capital where companies offer securities to the public. In return, investors receive equity, debt, or other types of investment instruments — depending on the structure of the raise.
Unlike public stock exchanges, these offerings are privately held and often illiquid, meaning you may not be able to sell or transfer your investment right away.
✅ Key Steps in the Crowdfunding Process
Explore Offerings
Browse active offerings and read the company’s disclosure materials, business plan, and financials.
Create an Investor Account
To invest, you’ll need to register on the platform and verify your identity in compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.
Review Disclosures & Risks
Before investing, take time to understand the company, its product or service, and the legal disclosures associated with the offering.
Complete Your Investment
Once you decide to move forward, you’ll select an amount to invest, choose your payment method, and e-sign any necessary documents.
Track Your Investment
After submission, your investment may be reviewed for compliance or accredited investor verification (if required). You’ll receive updates via email or your investor dashboard.
⚠️ Important Considerations & Risks
Investing in startups carries inherent risk and may not be suitable for all investors. Consider the following:
Lack of Liquidity:
Investments are typically not tradable or transferable immediately. Your funds may be tied up for an extended period.
Company Failure:
Many early-stage companies do not succeed. You could lose the entire value of your investment.
No Guarantees or Recommendations:
DealMaker does not recommend or endorse any offering. You must perform your own due diligence.
Limited Reporting or Dividends:
Unlike public companies, reporting may be infrequent, and dividends are not guaranteed.
🔍 Always consult with a legal, tax, or financial advisor if you have questions about whether a specific investment is right for you.
Still have questions? Contact our Support Team.