Are these investments risky?

New Zealand law prescribes the following “Warning statement about crowd funding”:

• Equity crowd funding is risky.
• Issuers (companies issuing shares) using Snowball Effect’s facility include new or rapidly growing ventures. Investment in these types of businesses is very speculative and carries high risks.
• You may lose your entire investment, and must be in a position to bear this risk without undue hardship.
• New Zealand law normally requires people who offer financial products to give information to investors before they invest. This requires those offering financial products to have disclosed information that is important for investors to make an informed decision. The usual rules do not apply to offers by issuers using Snowball Effect to raise funds. As a result, you may not be given all the information usually required. You will also have fewer other legal protections for this investment.
• Ask questions, read all information given carefully, and seek independent financial advice before committing yourself to any investment.

Snowball Effect thinks that the warning statement above is important – we want investors to be aware of the risks associated with investing in early stage companies.

For further information on the risks, please see our equity crowdfunding warning statement.