Crowd‑sourced funding is risky. Issuers using this facility include new or rapidly growing ventures. Investment in these types of ventures is speculative and carries high risks.
You may lose your entire investment, and you should be in a position to bear this risk without undue hardship.
Even if the company is successful, the value of your investment and any return on the investment could be reduced if the company issues more shares.
Your investment is unlikely to be liquid. This means you are unlikely to be able to sell your investment quickly or at all if you need the money or decide that this investment is not right for you.
Even though you have remedies for misleading statements in the offer document or misconduct by the company, you may have difficulty recovering your money.
There are rules for handling your money. However, if your money is handled inappropriately or the person operating the platform on which this offer is published becomes insolvent, you may have difficulty recovering your money.
Ask questions, read all information given carefully, and seek independent financial advice before committing yourself to any investment.
Investment in an Australian unit trust
This investment will be made through an Australian unit trust (Unit Trust). The trustee of the Unit Trust (unless otherwise notified) will be VentureCrowd Nominees Pty Ltd (ACN 166 599 140) (Trustee). The Trustee is an authorised representative of VentureCrowd Pty Ltd (ACN 166 598 849, AFSL 503381)
When you invest and the deal reaches the targeted raising amount, you will be issued with units in the Unit Trust. The full terms and conditions of your investment in this Unit Trust, including in respect of relevant performance and other fees, are set out in the Investment Contract which you must download and review prior to your investment.
The Trustee will enter into all relevant documentation with the investee company and will hold the assets of the Unit Trust on trust for all unitholders.
Australian dollar investment
This investment and all amounts related to this deal (unless otherwise stated) are expressed in Australian dollars (AUD).
Protection of your investment
To protect your investment, it is VentureCrowd's policy that, as far as possible, we are "last money to fund" in the relevant funding round. This means we do not transfer funds from the Unit Trust to the investee company until we have confirmation and evidence that all other external lead investors in the funding round have transferred their funds to the company.
In the unlikely event that any issue arises and the funding round does not proceed, we will refund your investment in full back to your nominated bank account.
During your investment period
During your investment period, you may receive investment updates or other information from the investee company through the VentureCrowd platform. You can access this by logging in to your investor dashboard. VentureCrowd takes care of the hassle of all the administration of the trust, as well as any correspondence and communication with the investee company. When a liquidity or exit event occurs (such as an IPO of the investee company), the Unit Trust is wound up and the proceeds including any profits are distributed to you as a unit holder of the trust.
Performance fees
VentureCrowd does not charge any upfront or ongoing management fee to the Unit Trust, subject to any specific terms agreed with investors on a case by case basis. VentureCrowd will only receive a performance fee if a profit is made by investors. The performance fee will be equal to 20% (or such other amount as may be agreed) of any distributions from the Unit Trust after each investor has recovered their initial investment amount.
