Netcapital Investors Should Act Now—Before the Next Shoe Drops

The SEC’s allegations are serious enough that investors should change how they approach new and existing investments made through the Netcapital portal.

The news that the Securities and Exchange Commission has sued Netcapital Inc. and five affiliated individuals for securities fraud has already been widely reported. Another recap of the headlines won’t help investors much.

What matters now is what investors should do.

The SEC’s allegations have not been proven in court, and Netcapital Funding Portal Inc. itself is not a defendant. Those qualifications matter. But after reading the SEC’s 56-page complaint, I believe three immediate precautions are warranted for anyone investing—or who has invested—through Netcapital.

Before writing this post, I reached out to my contact at Netcapital for comment and didn’t receive any feedback. Don’t read anything into that; things are moving fast! No one has time to keep up.

Author Devin Thorpe is an active investor who previously led the FINRA-member, SEC-regulated investment bank he founded and owned.

1. Subject every new Netcapital offering to extraordinary due diligence

I would not invest in an offering…