Risks Specific to Chatter
1. The company's revenues do not currently cover their expenses and they will need to grow them significantly in order to be profitable.
2. The company is a social network that requires critical mass to start growing organically and they may not reach with their current funding.
3. The company has not figured out how to acquire users at the cost needed to be sustainable as a social network and will will need to figure out how to grow virally in order to survive.
4. A larger competitor with more capital to spend could launch a competing product that makes it more challenging to acquire users.
5. The company has a small team and the loss of any individual member could materially impact their ability to succeed moving forward.
6. The Company's ability to increase the Company’s user base and revenues will depend heavily on the Company’s ability to innovate and to create successful new products and services. If products or services the Company introduces fail to engage users, the Company may fail to attract or retain new users and may not be able to generate additional revenue and the Company’s business may be materially and adversely affected as a result.
7. In order to respond to market changes, the Company’s management may from time to time make changes to the business of the Company. There are certain risks associated with such changes. As a strategic response to changes in the competitive environment, the Company may from time to time make certain pricing, service or marketing decisions or business combinations that could have a material adverse effect on the Company’s business, results of operations and financial condition.
8. The Company's limited operating history may make it difficult to evaluate the Company’s current business and the Company’s future prospects. The Company has encountered and will continue to encounter risks and difficulties frequently experienced by growing companies in rapidly developing and changing industries, including challenges in forecasting accuracy, determining appropriate investments of the Company’s limited resources, market acceptance of the Company’s existing and future products and services, competition from established companies with greater financial and technical resources, acquiring and retaining users and developing enhancements to the Company’s products and services. The Company cannot assure you that the Company will be successful in addressing these and other challenges the Company may face in the future.
9. The Company's business model depends on a number of factors. There is no assurance that the Company’s business model will be successful or that the Company will generate increased revenues. The Company may be forced to change or abandon the Company’s business model in order to compete with the Company’s competitors’ offerings.
10. The company's business model and product have not been significantly tested by the market. The business model and raffle offering has had limited exposure to non profits and celebrities. The reception of the Company’s products and use by celebrities is uncertain. Furthermore, slow adoption of the platform by celebrities may have an adverse effect on the business, financial condition and operating results.
11. The SAFE's in this offering may never convert into equity if an acquisition of follow on finnancing does not occur.