If the funding of a project fails, i.e. it does not successfully raise the amount to close the funding round, the direct investments will not be made. Since the investments in the platform are only intentions, these intentions will simply be called off and any commitments will be canceled. No money changes hands in the service.
At any time funder can also cancel their intention for any reason if they no longer are willing to invest at the closing. This have no other impact, other than possible negative reputation impact, at least if there is no reason given.
This entry was posted on Wednesday, June 30th, 2010 at 12:03 and is filed under Direct Investments, Raising capital. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.