Crowdfunding can be described as a method of financing growth companies to the next step in their development. On Pepins, there is usually a mix of non-/professional and non-/sophisticated investors investing in the growth companies.
In 2020, the European Parliament and Council of the European Union, published a new legislations regarding crowdfunding, which came into affect in Sweden at the end of 2022 (2017/1129, 2019/1937). The legislation states that each company offering crowdfunding solutions must first test the potential investors capabilities. That is, both in terms of understanding the risks associated with such investment through a knowledge test, and by showcasing the investor their own capabilities of bearing a potential finacial loss from the investment. If such test shows that the investor does not have sufficient knowledge and/or finances to bear such financial loss, the investor will be prohibited from making an investment.
The legislation was especially created to protect investors, as crowdfunded projects are associated with high risk. An investment may decrease in value, and it is never certain that you will receive a return on your investment. In fact, you may lose all of your invested capital. Investing in a capital raise should therefore never be seen as a quick way of making money.
Pepins provide all companies on the platform the opportunity to offer trade. However, not all companies choose to offer trade on the platform, but instead focuses on longterm growth and sometimes a future IPO. It is therefore no guarantee that you can sell your shares as it is depending on:
1) if the company would like to offer trade, and
2) there must be buyers in order to sell your shares. Meaning that if the company is not preforming so well, there might be more sellers than buyers, hence you may not be able to sell your shares.
Pepins provide no recommendations or guidance on your investments.