Investments of any kind are subject to risk. Oftentimes, risk and return are positively correlated - the higher the risk, the higher the expected return; and the lower the risk, the less the expected return.

Investments in any exempt market/private security, including investments through FrontFundr, are considered high-risk for some of the following reasons:

There is a possibility that you may lose your entire investment, if the company were to fail before providing liquidity or any return to shareholders.

There is currently no marketplace or exchange to sell shares in private companies. Generally, you cannot sell investments in a private company until a liquidity event occurs. A liquidity event - meaning that your investment is ‘liquid’ and can be sold - is typically a listing on a public exchange (e.g. TSX, TSX Venture, NEO, or CSE) or, some instances, takes the form of an acquisition by another company. A liquidity event may never occur, and there is the possibility that you will never be able to sell your shares.

Companies are required to provide shareholders with annual financial statements. However, shareholders of the companies can waive this requirement and it does not apply to investors who are not shareholders (e.g., noteholders or SAFE holders).

Throughout our engagement with a company, we encourage the company to provide shareholders with all material business updates and that they understand the obligation and benefit of doing so.

Risks that are specific to the type of securities being offered.

Risks that are specific to the company.

Risks faced by the company because of the industry in which it operates.