What happens if a project I invested in doesn’t complete on time?

  • In the due diligence process, Fundscraper’s Investment Committee will source projects that will have a projected buffer built into the project timeline so that there are allowances in scheduling to keep the investment horizon on pace.
  • Preferred equity investments will continue to earn a preferred rate of return.
  • Some project investments will have an outside date where the sponsor company is obligated to complete the project and allow the investors to exit the investment. Should this not occur, the sponsor company will be able to exercise its option to extend the project duration or will raise additional capital to allow existing investors to exit.
  • Debt investments have a fixed maturity date and few options to extend without penalty. Therefore, the sponsor company will be responsible for paying the interest and principal on time, or else be in default of the loan.
  • In any event, you should consult the particulars of any offering as detailed in the offering as posted on the Fundscraper platform or any posting supplement. 

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