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Frequently asked questions
If your question is not answered here, contact us and we will respond in writing.
Risk warning: read before investing
Investing through this platform is risky and speculative. You may lose your entire investment and must be able to bear that loss. Past results are not indicative of future performance. Ask questions, read all information carefully and seek independent financial advice before committing funds. The SEC requires investor limits to be monitored. No investments are accepted while Pennytree is not live.
Read the full risk warningFor investors
- Can I lose my money?
- Yes. You can lose all of the money you invest. These investments are speculative and illiquid; returns are not guaranteed and there is no claim against the National Investor Protection Fund.
- How much am I allowed to invest?
- As a retail investor, no more than 10% of your net annual income across all crowdfunding investments. The uploaded Rule 4 includes both twelve-month aggregate and calendar-year retail wording; the monitoring period needs legal confirmation. Sophisticated investors, high net worth individuals and qualified institutional investors are exempt from that cap under SEC definitions, subject to verified classification before investing.
- Who holds my money before an offer closes?
- No funds are accepted while Pennytree is not live. The rules require an appointed SEC-registered custodian and a separate interest-yielding trust account per round, with release only on the required conditions. The custodian remains to be confirmed here.
- Can I change my mind?
- You can cancel for any reason up to 48 hours before an offer closes. A pre-close material adverse change permits rescission within seven days of public disclosure where proceeds remain untransferred. Cancellation refunds or releases are due within 48 hours of the request.
- What happens if an offer does not reach its target?
- If it does not reach its minimum threshold, all subscriptions are refunded within 48 hours of close. If it reaches the minimum threshold but not the full target, the Fundraiser must submit a revised use-of-funds plan within one week.
- Can I sell my investment?
- There is no secondary market. Exit depends on what the Fundraiser offers, such as a buyback, a dividend or interest stream, or a future sale of the business. A lock-in period applies, with limited exceptions.
- Does Pennytree rate offers by risk?
- No. Every offer on this platform is high risk and we do not score, rank or grade offers by safety. Any comparison between offers is yours to make from the disclosures.
For fundraisers
- How much can my company raise?
- Maximums, not minimums: ₦50m micro, ₦70m small and ₦100m medium within twelve months, including controlled/common-control entities and predecessors. Separate commodities rules and SEC-approved exceptions may apply.
- What instruments can I offer?
- Shares, plain vanilla bonds or debentures, or a simple investment contract approved by the Commission.
- How long can my offer run?
- Up to 60 days, extendable once by a further 30 days.
- What is a minimum threshold?
- The least you must raise for the offer to succeed. It must be at least 50% of your target. Below it, every subscription is refunded.
- What must I disclose after the offer closes?
- Ongoing reporting for as long as the instrument is outstanding, including annual financial statements and any material adverse change, which must be notified within 24 hours.
- What if my offer fails?
- A 30-day cooldown applies before you may apply again, and you will need updated financial statements.