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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. Investment limits are monitored by PennyTree.
Read the full risk warningFor investors
- Can I lose my money?
- Yes. You can lose all of the money you invest. Most early-stage and small businesses fail, and there is no compensation scheme covering these investments.
- How much am I allowed to invest?
- As a retail investor, no more than 10% of your net annual income across all crowdfunding investments in any twelve-month period. Sophisticated investors, high net worth individuals and qualified institutional investors are exempt from that cap on the basis of their own declaration.
- Who holds my money before an offer closes?
- An independent SEC-registered custodian, in a segregated trust account. PennyTree never holds your funds, and neither does the Fundraiser until release conditions are met.
- Can I change my mind?
- You can cancel for any reason up to 48 hours before an offer closes. Inside that window you can only cancel if a material adverse change has been notified and your funds have not been transferred.
- 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?
- ₦50m for a micro enterprise, ₦70m for a small enterprise and ₦100m for a medium enterprise, in any twelve-month period.
- 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.