Investment Disclosures

Platform Role and Services

What We Do

Invest Local Alaska operates as a technology platform that facilitates connections between Alaska investors and Alaska-based businesses seeking capital. We provide:

Online marketplace for investment opportunities
Transaction processing and payment systems
Communication tools between investors and businesses
Investment tracking and reporting systems

What We Don't Do

We are NOT:

A licensed broker-dealer or investment advisor
A financial institution or bank
Providing investment advice or recommendations
Conducting suitability analysis for investors
Guaranteeing investment performance or returns

Investment Risks

🔥 High Risk of Loss

Investing in small businesses and startups is highly speculative and involves substantial risk of loss. You may lose your entire investment.

Many small businesses fail within their first few years
Even successful businesses may not provide returns to investors
No insurance or government protection covers these investments

🔒 Lack of Liquidity

These investments are illiquid. You will likely be unable to sell or transfer your investment.

No public market exists for these securities
Transfer restrictions may apply for extended periods
You may need to hold your investment for many years

📉 Dilution Risk

Your ownership percentage may be reduced by future fundraising activities.

Companies may issue additional securities
Your percentage ownership may decrease
Anti-dilution protections may not be available

📊 Limited Information

These companies are not required to provide the same level of disclosure as public companies.

Financial statements may be unaudited
Limited ongoing reporting requirements
Information may be incomplete or inaccurate

Regulatory Framework

Alaska Intrastate Offerings

Investments on our platform are made pursuant to Alaska intrastate offering exemptions. This means:

Only Alaska residents may invest
Businesses must be organized and primarily operating in Alaska
Securities cannot be sold to out-of-state residents
Transfer restrictions apply to maintain exemption status

SEC Registration

These securities are NOT registered with the Securities and Exchange Commission (SEC) and rely on exemptions from registration requirements.

State Registration

Offerings may be exempt from Alaska state securities registration requirements but must comply with applicable state laws and regulations.

Investor Limitations

Investment Limits

Investment limits may apply based on your income and net worth:

Annual income or net worth less than $107,000: Limited to greater of $2,200 or 5% of lesser of annual income or net worth
Annual income and net worth both $107,000 or more: Limited to 10% of lesser of annual income or net worth, not to exceed $107,000
Limits are calculated across all crowdfunding investments in a 12-month period

Eligibility Requirements

Must be Alaska resident
Must be at least 18 years old
Must pass identity verification
Must acknowledge investment risks

Fees and Costs

Platform Fees

We charge fees for our services as disclosed on our Fees page. These fees may include:

Investment processing fees paid by investors
Campaign listing fees paid by companies
Success fees paid by companies on funds raised

Other Costs

Additional costs may be associated with your investments:

Legal fees for complex transactions
Tax preparation costs
Payment processing fees
Administrative fees charged by companies

Tax Considerations

Important: You should consult with a tax advisor regarding the tax implications of your investments. Tax considerations may include:

Income recognition from investment returns
Capital gains or losses upon sale or disposition
State and federal tax obligations
Potential for phantom income without cash distributions
Alternative minimum tax implications

Conflicts of Interest

Platform Interests

We may have financial interests that could conflict with your interests:

We earn fees from both investors and companies
Our success depends on completed transactions
We may invest in companies on our platform
We may have business relationships with service providers

Company Relationships

Companies pay fees to use our platform
We may provide additional services to companies
We may have personal relationships with company principals
Companies may recommend investors to our platform

Dispute Resolution

Disputes may arise between:

Investors and companies
Investors and our platform
Multiple investors in the same company

Resolution options may include negotiation, mediation, arbitration, or litigation as specified in relevant agreements. Legal fees and costs may be substantial.

No Government Backing

These investments are NOT:

FDIC insured
SIPC protected
Bank guaranteed
Government backed
Protected by any insurance or guarantee fund

You bear the full risk of loss on these investments.

Forward-Looking Statements

Company materials may contain forward-looking statements about future performance, market conditions, or business prospects. These statements:

Are based on current expectations and assumptions
Involve significant risks and uncertainties
May not be achieved
Should not be relied upon as guarantees

Actual results may differ materially from those projected.

Investment Acknowledgment

By investing through our platform, you acknowledge that you have read and understand these disclosures and that:

You understand the high risk of loss
You can afford to lose your entire investment
You have considered your financial situation and investment objectives
You understand the lack of liquidity
You will not rely on us for investment advice
You will conduct your own due diligence

Questions About These Disclosures?

If you have questions about these disclosures or need additional information, please contact us:

Email: legal@investlocalak.org

Phone: (907) 555-0100

Mail: Invest Local Alaska, 123 Main Street, Anchorage, AK 99501

⚠️ Important Investment Warning