When you make a debt investment on NextSeed, you are providing funds to a business so they can build and grow.
Whether you make a debt or equity investment, businesses expect to pay back your original investment, plus a return on top (think of the return as what a business pays you to use your investment funds).
Note that, even with the best intentions, businesses cannot guarantee their success. Investing is risky and you may lose all your investment.
When you find a business you like, you can invest online by clicking “Invest Now” on the offering page.
If your account is set up, simply enter the amount you want to invest and check the boxes to complete your investment (you can view the investment contract by clicking on the links).
Remember that Available Cash is used to fund your investments, so if you get a payment and then invest in a new deal, that new investment may be funded using payments you’ve received. For instance, if you invest $1000 and reinvest when you collect $100 in payments, you’ll end up investing $1,100 with an initial contribution of only $1000.
You can also visit the Financial Industry Regulatory Authority’s guide on Crowdfunding and the JOBS Act.
The Securities and Exchange Commission also has a guide for investors on Regulation Crowdfunding