How investing on Pennytree works

Retail investors may invest no more than 10% of net annual income, aggregated across all crowdfunding fundraisers and portals. The uploaded Rule 4 refers to both a twelve-month aggregate and a calendar-year retail limit. Pennytree Compliance must confirm the applicable monitoring period before launch.

Sophisticated investors, high net worth investors and qualified institutional investors are exempt from this cap under the SEC definitions. A sophisticated investor has at least three years of active capital-market investing experience and understands risk and return. A self-selected category is not evidence of verification.

Read the verified offering document, financial information, ownership, instrument terms, use of proceeds, related-party interests and business-specific risks. Ask the Fundraiser questions through the moderated public forum and seek independent financial advice. Pennytree must not solicit investments or recommend a particular offer.

Identity, investor-category evidence and total crowdfunding exposure must be checked. A legally binding signed risk acknowledgement must be obtained separately from the service agreement and retained for at least 7 years after distribution. The sample checkboxes on this website are not an electronic signature.

The SEC requires an appointed SEC-registered custodian to maintain a separate, interest-yielding trust account for each funding round. The custodian is not yet confirmed on this website. Funds must not be accepted before these arrangements are verified.

Release requires the target or disclosed minimum threshold, no material adverse change, and all applicable securities-registration requirements. Full-target proceeds are directed for release within 24 hours of offer end, subject to these conditions. If only the threshold is met, a revised use-of-funds plan must be provided within one week and the project must be independently downscalable. Meeting a threshold alone does not authorize payout.

• Withdraw for any reason up to 48 hours before the stated closing date, through the portal or by notice.
• Debited or blocked funds must be refunded or released within 48 hours of a cancellation request.
• A material adverse change before closing must be notified within 24 hours of awareness. Investors may rescind within 7 days of public disclosure where proceeds have not been transferred.
• If the offer fails to reach its minimum threshold, all subscriptions must be refunded within 48 hours of offer end.

A one-year lock-in applies after allotment, subject to Rule 27 exceptions including transfers to the Fundraiser, qualified institutional or high net worth investors, a registered offer for sale, registered retail investors, family members or qualifying family trusts and specified personal circumstances. These exceptions do not authorize Pennytree to intermediate secondary trades. Further legal transfer restrictions may apply.

Equity offerings require tag-along rights and debt offerings an early-redemption option if controlling shareholders transfer control within three years. Investors must receive annual audited statements, actual use-of-proceeds disclosures and timely notices of prescribed business or control changes. Relevant document requests must be answered within 5 working days.