How investing on PennyTree works

1. 01

   Discover an offer

   Browse live offers and open a deal room. Each deal room reproduces the Fundraiser's offering document in full: overview, management, use of proceeds, instrument terms, cap table, financial condition, offer-specific risks, related-party transactions and exit options.

2. 02

   Read the risk warning

   The risk warning is shown before you can reach an investment action. It is the same warning everywhere on this platform, and there is a single canonical version of it.

3. 03

   Register and verify your identity

   You register as an investor and complete identity verification using your BVN or NIN. You also declare your investor category and, if you are a retail investor, your net annual income.

4. 04

   Confirm your investment limit

   A retail investor may invest no more than 10% of their net annual income across 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.

5. 05

   Affirm each risk statement

   You affirm eleven statements individually. This is captured as an electronic signature and stored separately from your acceptance of the terms of use.

6. 06

   Pay into the custodian trust account

   Your funds go to a segregated trust account held by an independent SEC-registered custodian. They never pass through PennyTree's own accounts or the Fundraiser's accounts.

7. 07

   Close, release or refund

   If the offer reaches its minimum threshold and there is no unresolved material adverse change, the custodian releases funds to the Fundraiser within 24 hours of close and your instrument is issued. If the threshold is not met, every subscription is refunded within 48 hours.

If you invest as a retail investor, the Commission limits you to 10% of your net annual income in any twelve-month period, counted across every crowdfunding investment you make. PennyTree checks the limit before accepting an amount and blocks anything above it.

You may cancel for any reason up to 48 hours before an offer closes; that cancellation is automatic. Inside the final 48 hours you may cancel only if the Fundraiser has notified a material adverse change and your funds have not yet been transferred. A material adverse change must be notified within 24 hours and opens a 7-day window in which you may rescind.

These investments carry no protection under a prospectus and no claim against the National Investor Protection Fund. There is no secondary market, so you should expect to hold your instrument until the Fundraiser offers an exit. You can lose all of the money you invest.