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Investor FAQ's

Review below for some of our most frequently asked questions. If you are unable to find the information you need, please contact us at boo@alvearventures.com

Who can invest?

For the vast majority of investments offered on Alvear, anyone can invest. There are a few important details to remember:​

  • Both U.S. residents and foreign investors can participate in Alvear deals. The process is largely the same, but additional information may be required from foreign investors.

  • Accredited Investors, as defined by the SEC, are not limited in the volume or dollar amount they may choose to invest in Alvear deals.

  • Non-Accredited Investors are individuals or entities that do not meet the income or net worth thresholds for accredited investors. However, they are still allowed to participate in Alvear investment opportunities, but there is a commitment limit depending on their income and assets.

  • SEC investment limit calculation for Non-Accredited Investors: Click Here

  • Alvear's platform automatically tracks investment amount and volume for non-accredited investors, so you will be stopped once you hit your personal limit.

  • Companies, trusts, and other types of legal entities can also invest in Alvear deals. If they do not meet the criteria for accredited investor status, they will be subject to the same investment limits as non-accredited individual investors. 

  • Remember, investing in crowdfunding campaigns can be risky, and the potential for loss of the total investment is real. Therefore, investors should only invest money they can afford to lose, regardless of Accreditation status. 

What is the minimum I can invest?

The commitment minimum is unique for each opportunity and is determined by the company listing its investment. Firms that are raising a large amount of money may choose to increase the minimum, while smaller fundraising campaigns may go as low as $100. 

As a rule of thumb,  Alvear investment minimums typically range from $100.00 to $1,000.00, however, some may be significantly higher.

What happens to my money when I invest?

When a company publishes its investment offering on Alvear's platform, it must establish a corresponding escrow account to hold funds during the course of the offering. The escrow account is directed by Alvear. The company can not access any funds until the investment period is completed. When you decide to invest, your funds leave your account and go to the escrow account, where they are held until Alvear directs them to be released to the company you invested in. If the company alters any of the details of its offering, you will be notified andgiven the opportunity to re-certify your commitment in light of the material changes.

How can I make money investing on Alvear?

Alvear Ventures allows investments in various types of securities such as equity, debt, and revenue share agreements. Each investment opportunity will publish detailed information about the category, type, and scope of security they are offering for sale. You will be able to review this information prior to investing. Here's how you could potentially make money from each type, but remember that there are risks associated with all investment types.

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Debt Securities:

  • Interest Payments: When you invest in a debt security, you're essentially lending money to a company. The company promises to repay the principal amount along with interest after a specified period. This interest is your return on investment.

  • Principal Repayment: At the end of the loan term, the company will repay the original principal amount you invested. However, it's important to remember that this return of principal is contingent upon the company's ability to pay.

Revenue Share Agreements:

  • Percentage of Revenues: In a revenue share agreement, the company agrees to share a portion of its revenues with investors. As the company's revenue grows, the amount you receive also increases. Your return is directly tied to the performance of the company. The inverse is also true, if the business is doing slow business, your revenue share payments will not be as substantial.

  • Return Until a Maturity is Reached: Usually, the company will continue to share its revenues until the term of the agreement matures.

Equity Securities:

  • Capital Gains: When you purchase equity in a company, you're buying a portion of that company. If the company appreciates in value over time, your shares will also increase in value. If you sell your shares for a price higher than what you paid, you can make a profit. It is important to note that there are restrictions on whom you can sell your shares to, if at all. Equity investments may tie up your investment capital for unknown periods of time.

  • Dividends: Some companies may distribute a portion of their earnings to shareholders in the form of dividends. If the company you've invested in decides to pay dividends, you'll receive a portion of the earnings based on the number of shares you hold.

  • Exit Events: You may also earn money when a company goes through an exit event such as a merger or acquisition. In these scenarios, the shares you hold might be bought at a premium to their original purchase value.

Remember, while these mechanisms provide potential ways to make money, investing in small businesses is risky. Not all investments will be profitable, and there's a chance you could lose your entire investment. 

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