Risks Specific to GroundSwell SPC
1. GroundSwell has no revenue and will not have any until we start accepting customers in Q3 of 2017. It is possible that we will never have customers - which would be bad.
2. GroundSwell faces significant competition from banks, credit card companies, credit unions, and other prepaid card programs. They could perform a host of ill mannered and aggressive tactics in an attempt to keep us from changing the world.
3. Changes in financial regulations could negatively impact our ability to conduct business. Regulators and politicians are a fickle sort, who knows what kinds of schemes they could dream up?
4. GroundSwell relies on partnerships with other companies for much of our technology and operations. Changes to their operations could impact our ability to do business. Changes in strategy, additional competition, or regulatory pressure would be bad for us.
Customers may not want to use our card to change the world. It is possible that card holders would prefer to support large global banks instead of their favorite organizations. If that were to happen, it would be difficult to generate revenue and support organizations making the world a better place.
6. Other banks, prepaid card programs, credit cards, and credit unions could decide to start sharing their revenue with our partners. This could make it difficult for us to remain in business, but it would also mean that more money was flowing to the people and organizations that need it most...a little bittersweet to be sure, but not a complete catastrophe from a macro perspective.
7. Visa could revoke our license and this would be very bad. Visa controls the network that our cards are processed on. Without a Visa license, we'd have to consider acquiring a MasterCard license or worse still our card holders wouldn't be able to transact business outside of our program. This would be bad and we'd ultimately have to close the business and find another way to change the world.
8. We could lose our Bank Identification Number. This would be really bad. The Bank Identification Number is what allows us to capture and share interchange revenue with our nonprofit partners - without it we'd have to resort to bake sales. Unfortunately, none of us are bakers so we'd probably go out of business.
9. We could experience higher than expected fraud losses. There are bad people in the world who are unscrupulous and will do anything to get money. We've hired some really smart and crafty companies to protect us - along with some insurance, but if they are not smart enough, or crafty enough, or our insurance runs out, it could be problematic. If we can't recover the money - or reduce the fraud, we could go out of business.
10. Key team members could leave the company without replacements. We've got some really talented people we work with. If something were to happen to them it might be difficult or extremely challenging to replace them quick enough to save the company.
11. We could run out of money before reaching cash flow break even. Without revenue that exceeds expenses, we are reliant on raising funds to stay in business. If we spend all of our money and can't raise more, we will probably go out of business.