Predicting Success

You cannot predict the success of your investment based on past performances of businesses on NextSeed.

The success of past businesses that have raised funds on NextSeed does not guarantee the success of any other business raising funds on NextSeed.

The historic returns and data on past NextSeed businesses are provided for informational purposes only to celebrate the successes of local communities. This information should not be interpreted as investment advice or as any guarantee of investment returns on any other business raising funds on NextSeed. Each business and each investment is unique, and you may not see similar, if any, returns on your own investments.

For term notes, the interest rate is set up front. Some businesses have chosen to make prepayments in full or in part without penalty, but this does not mean you will see the same results with any other business you invest in.

For revenue sharing notes, the rate of return is ultimately dependent on each business’ success, such as how quickly the business opens and the amount of revenues earned by the business each month, among other factors.

For preferred equity investments, dividend payments are typically made on a quarterly basis, however, payments are ultimately decided by the business. Any increase in the value of preferred equity stock may be realized through a sale of that stock, however, your ability to sell preferred equity stock is limited because there is no secondary market where you can freely buy and sell your stock.

You cannot predict the success of your investment based on past performances of a specific entrepreneur.

The prior success of an entrepreneur does not guarantee the success of any new venture by that entrepreneur. Each business venture is unique, and while the prior experience of an entrepreneur may be relevant, it is possible that the entrepreneur may not be as successful in the new venture.

A business’s success depends on various factors that are outlined in the Disclosure Statement for each offering. These may include factors such as brand perception, reputation, competition, management, labor supply, personnel, market conditions, supply and delivery costs, operational factors, financing, real estate, and more. Even with past experience, an entrepreneur may not be able to overcome the difficulties that arise in their new venture.

You should do your own due diligence and research on investments.

NextSeed does not provide investment recommendations, and it’s up to you to decide if a business is right for your investment. Furthermore, remember the old adage, the crowd is not always right. Even if a business succeeds in attracting a large number of investors quickly, the business may still fail due to a number of other reasons. On the flipside, even if a business does not seem to attract a huge investor base right off the bat for whatever reason, the business may be a hidden gem waiting to be discovered.

Take charge of your own investment destiny. Use your knowledge of the city, the area, and current trends. Read the disclosure statement located on the offering page. Ask questions in the comments section and do your own research on the business. Listen to what the entrepreneur says and what other investors contribute, but remember to take everything with a grain of salt and make up your own mind.