General Risks of Equity Crowdfunding

Please study the risk information to ensure that investors understand the potential risks involved with equity crowdfunding investments through the PeerPower platform before making an investment.

Risk of Capital Loss

Most early-stage businesses may not succeed or may fail to scale as planned. Therefore, investing in these businesses carries high risk, and it is possible that investors may lose some or all of their invested capital. Investors should carefully consider this risk and only invest amounts they are willing to lose. Additionally, building a diversified portfolio is recommended to spread risk and enhance the overall return potential. PeerPower and the securities-issuing companies are not liable for any losses investors may incur if the business fails.

Liquidity Risk

Investments in unlisted equity instruments generally have low liquidity, are considered speculative, and carry relatively high risk. Shares purchased through equity crowdfunding platforms like PeerPower may not be easily sold, as these equities are not listed on secondary markets such as the MAI or the Stock Exchange of Thailand (SET). As such, there may be no available market to facilitate the resale of such shares.

No Obligation to Pay Dividends

Unlike debt instruments, equity securities do not carry an obligation for the issuing company to pay dividends to shareholders. Dividends are usually distributed from the company’s profits, and in the case of startups or early-stage companies offered through PeerPower, they typically do not adopt a dividend distribution policy. Profits are often reinvested into the business to drive growth and increase shareholder value. Therefore, investors may not receive any returns until a future investment exit opportunity arises—such as a share sale.

Equity Dilution Risk

Equity dilution occurs when a company issues additional shares in the future. This increases the total number of shares, which can reduce the ownership percentage of existing shareholders who do not participate in the new round of investment. Such dilution can also impact voting rights, dividend entitlements, and the overall value of the investment.