1. In general, the investment in securities of companies is characterized by different levels of risk, with the investment in the securities of early-stage companies being characterized, in general, with a higher degree of risk. As is well known, early-stage companies have limited operating history, and have inherent uncertainty regarding their future and development prospects. Therefore, each investor should recognize that they are likely to lose their entire investment.
  2. Accordingly, the risks entailed in the investment in securities and participation in offers advertised on the website vary between the different offering companies. In light of the above, there are risk factors which due to their very nature are not presented below, and shall be presented to users in the course of each offer. The risks entailed in the investment in securities and participation in offers published on the website, include, inter alia, the risks detailed below:
  • The offer is not subject to securities law and corporate law applicable to companies offering securities to the public. The Israel Securities Authority has not approved of the publication of the offer document and has not reviewed it, after completion of the offer, the company will not be subject to the disclosure and corporate governance regulations intended to protect investors in the company and supervision by the Israel Securities Authority.
  • There is a possibility that the offering company may become insolvent and/or commence liquidation proceedings, and the holders of the offered securities may lose the entire investment amounts.
  • There is a possibility that all investment amounts may be lost, due to the fact that the investors are minority shareholders, or due to the activities of the offering company or its controlling shareholder, including the sale of control in the offering company, sale of its material assets or other transactions of its interested parties.
  • There is a possibility that those holding the securities of the offering company will not succeed in selling the offered securities due to an inability to sell the offered securities, due to the fact that they are not listed for trade on the Tel Aviv Securities Exchange or any other exchange.
  • There is a possibility for the dilution of the rate of holdings of each investor in the capital of the offering company as a result of the future issuance of its securities, including, but not limited to, in the course of future capital raisings of the offering company (if any), subject to the rights attached to the offered securities.
  • Online investment under the offering model has inherit risks, including but not limited to, the inability to negotiate vis-à-vis the investment terms, the lack of an economic incentive to keep track of the investment considering its scope, etc.
  • The pricing of the offered securities that reflects the value of the offering company was performed on the basis of valuations of the management of the offering company, without substantiation from a valuator or receipt of an expert opinion from a financial professional or any other party.
  1. In light of that stated above, and without such being able to impose liability on the company, the company recommends that users invest in amounts that they are economically able to absorb their loss and to diversify their investments accordingly.