Risks Specific to Tradeshow
1. There are many risks associated with Boxes. We are a small company that does not have a lot of history, currently has a very small number of clients, and not a lot of revenue. There are many serious risks which include the need to raise money through this offering and potentially other additional offerings. If the company does not raise enough money through these events, or generate enough revenue to sustain its expenses, the company may not survive. In addition, the company may not be able to develop projects and put on shows that become profitable, they may not find partners to jointly develop properties and help support projects and shows financially. The company may invest in projects and shows that end up losing money. The company may not realize any benefit from having fans own part of the company.
2. This is a small company. We are a small company that does not have a lot of history, currently has a very small number of clients, and not a lot of revenue. People will invest in this company because they believe that building a community online and a virtual trade show company is a good idea and that the company has the ability to develop and monetize its properties successfully.
3. We have a small management team. However good you think we are, we might fail, we might give up, we might return to school or move abroad or start another business. Until we achieve a sustainable financial position, we will not be able to hire additional employees that will allow the company to continue if we leave.
4. We will need more people to join our company. We will need additional employees, and people with the skills necessary to ensure we create and sell a premium product. The people we bring on should come with specialized skills that will bring value to the company. There are no guarantees that we will be able to find the right people for the job.
5. The company is going to need more money. We might not sell enough securities in this offering to meet our operating needs and fulfill our plans, in which case we will cease operating and you will get nothing. Even if we raise everything we are looking for, we will probably need to raise more funds in the future, and if we can’t get them, we will fail. Even if we do make a successful offering in the future, the terms of that offering might result in your investment in the company being worth less, because later investors might get better terms.
6. Will anyone want our product and will they pay for it? The company will only succeed if there is sufficient demand for the product and our community grows well.
7. Crowdfunding is a new frontier, and nobody knows exactly how the consumer and legal landscape will evolve. Changes to securities law could have a significant impact on the company’s ability to operate.
8. Having a large number of investors is a risk. The company expects to have a large number of small investors, which is uncommon. Despite best efforts, it’s possible that unexpected risks and or expenses of managing this shareholder group could cause the company to fail.
9. While the founders have a great deal of experience in some areas, neither has experience with putting on shows that the company expects to rely upon. Thus the company will have strong dependencies and partners and key employees to profitably develop and put on shows.
10. Boxes is reliant on third parties. We rely on third parties such as partner companies, consultants, celebrities, etc. for development, production, promotion and monetization of our products. They may give more time and attention to other partners who are better funded or better known.
11. Competitors may enter the market with similar products. It is possible that a competitive company may enter the market to try and do the same thing or similar thing as we do. While these competitors may not be exactly like us, they may be able to achieve similar benefits to consumers at a lower price, and may be more successful than us.
12. It will take a while for the initial profits to come in. Even in the best case scenario, the process of making money can be slow. From the time a project starts until it is complete, released, and begins to see revenue can be substantial.
13. Any valuation at this stage is pure speculation. We are not saying the company is worth a specific amount. We can’t. It’s a question of whether you, the investor, want to pay this price for this security. Don’t think you can make that call? Then don’t invest.
14. You can’t easily resell the securities. There are restrictions on how you can resell your securities. More importantly, there is no market for these securities, and there might never be one. It’s unlikely that the company will ever go public or get acquired by a bigger company. That means the money you paid for these securities could be tied up for a long time.