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Can my percentage ownership be diluted? If yes, when and how?

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Byadmin

Yes. Any investment made through truCrowd may be subject to dilution in the future. Dilution occurs when a company issues more shares. Dilution affects every existing shareholder who does not buy any of the new shares being issued. As a result, an existing shareholder's proportionate shareholding of the company is reduced or 'diluted'- this has an effect on a number of things including voting, dividends and value.
 
Some businesses who pitch through truCrowd offer A-Ordinary Shares, which may include pre-emption rights that protect an investor from dilution. In this situation the business must give shareholders with A-Ordinary Shares the opportunity to buy additional shares during a subsequent fundraising round so that they can maintain or preserve their shareholding. Please research the pitch and the Articles of the company to see if the shares you are buying will have these pre-emption rights. Most companies do not offer pre-emption rights for B Investment Shares.

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Investing in startups and early-stage businesses involves risks including illiquidity, lack of dividends, loss of investment and dilution. Equity crowdfunding should only be executed as part of a diversified portfolio in accordance with the limits set up by the State Securities Board. At truCrowd we exclusively serve resident investors who understand these risks and are capable of making their own investment decisions. Read the full Risk Warning. California Investor Only – Do not sell my information
Investing in startups and early-stage businesses involves risks including illiquidity, lack of dividends, loss of investment and dilution. Equity crowdfunding should only be executed as part of a diversified portfolio in accordance with the limits set up by the State Securities Board. At truCrowd we exclusively serve resident investors who understand these risks and are capable of making their own investment decisions. Read the full Risk Warning. California Investor Only – Do not sell my information

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TruCrowd Funding Inc. is not a member of FINRA (Financial Industry Regulatory Authority), is not registered with the SEC (Securities and Exchange Commission) to operate Regulation CF Crowdfunding Portals, it is not a Broker/Dealer or an Investment Adviser and does not engage in the operation of any Regulation CF Crowdfunding Portals. TruCrowd Funding Inc. neither makes any recommendation regarding, nor is providing any advice with respect to, any company or offering discussed in this site.

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