Some things to consider.
• What do the financial statements, if provided, tell you about the business?
• Are the claims and expectations reasonable?
• How reasonable is the issuer’s reliance on a particular technology, customer, product or natural resources claim?
• Who are the issuer’s competitors?
• What is the experience and background of management?
• How long has the issuer been in business and has the issuer conducted prior offerings?
• How does the issuer plan to use the money raised?
• If the securities you are investing in have transfer restrictions, when will and how may the restrictions be lifted?
• Because you may not be able to resell your investment easily, are you comfortable holding it indefinitely?