RISK FACTORS

• The past performance of a startup or its management does not predict its future results.
• There can be no assurance that targeted results will be achieved.
• Loss of principal is possible, and even likely, on any given investment.

Difficulty in valuing startup investments. It is enormously difficult to determine values for any startup. The challenges include:

• It is difficult to determine the magnitude of the risks applicable to a given startup and the likelihood that a given startup’s business will be a success.
• There may not be a ready market ready for a startup’s securities or other source(s) of price information on arm’s length transactions.
• There is likely to be little–if any–public information about the operating or financial history for startups. Given this difficulty in valuation, these investments are often not available to use as collateral like other financial instruments.

• A startup may be a newly formed entity.
• A startup may have little or no operating history.
• Each offering should be evaluated on the basis that the startup’s business plan and projections may not prove accurate and that the startup may not achieve its objective.

Minority investment and limited rights. All or a significant portion of an investor’s investment in a start-up will represent a minority stake(s) in privately held companies or the right to assets not yet created by the startup.

• An investor’s interest in a startup may be non-voting shares or may represent a debt interest.
• Many investments will never provide the investor the right or ability to vote or influence company leadership in any way.
• Even with voting shares, minority stakes will have neither the control characteristics of majority stakes nor the valuation premiums accorded majority or controlling stakes.
• Later capital raises may reduce or dilute percentage ownership of an investor.
• Later capital raises may reduce other investor rights such as voting rights.

• Investors in a startup will not participate in decisions with respect to the startup’s business and affairs.
• Investors will be reliant on the existing management and board of directors of such companies, which may include representatives of other financial investors with whom the investor is not affiliated and whose interests may conflict with the interests of the investor.
• Decisions made by the startup’s management may be more beneficial for some investors than for others.
• Startup management may tend to consider the investment and tax objectives of its shareholders as a whole when making decisions on investment structure or timing of a sale, and not the individual circumstances of any investor, nor do they have any legal duty to do so.

No assurance of additional capital for startups. After an investor has invested in a startup, continued development and marketing, administrative, legal, regulatory or other expenses, may require that it obtain additional financing.

• Startups generally have substantial capital needs that are typically funded over several stages of investment.
• Such additional financing may not be available on favorable terms, or at all.

• The investor may not be able to obtain all information it wants regarding a particular startup.
• It is possible that the investor may not be aware on a timely basis of material adverse changes that have occurred with respect to certain of its investments.

• There is no assurance that a particular startup will comply with all requirements of federal law and Regulation Crowdfunding whether before, during or after an offering.
• Once an offering is completed, FanVestor CF does not have a continuing obligation to monitor the timeliness and accuracy of the issuer’s Form C, its shareholder records or its financial statements.

• Investors should consult their own professional advisors with respect to the tax consequences of an investment in a startup under federal, state and local law.
• The structure of any investment in a startup may not be tax efficient for any particular investor.

Forward-looking statements:  The information a startup makes available to investors may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.

• These statements can be identified by the fact that they do not relate strictly to historical or current facts.
• Forward-looking statements often include words such as “anticipates,” “estimates,” “expects,” “projects,” “intends,” “plans,” “believes” and words and terms of similar substance in connection with discussions of future operating or financial performance.
• Any forward-looking statement made by a startup speak only as of the date on which it is made. Startups are under no obligation to, and generally they expressly disclaim any obligation to, update or alter their forward-looking statements, whether as a result of new information, subsequent events or otherwise.