Frequently Asked Questions
Overview
Why are we doing this?
Pravo (the Ukrainian word for “justice” and “human rights”) was created to support Ukrainian startups and small businesses by connecting them with accredited Western investors. With few affordable funding options available in Ukraine for startups looking to build a retail investor base, our platform offers a cost‐effective, high–impact solution to help build a stronger, economically viable future for the country.
Corruption Concerns in Ukraine – Should I be worried?
While Ukraine has historically faced challenges with corruption, many local entrepreneurs are working diligently to overcome these obstacles. By directly connecting community–level innovators with passionate investors—and by ensuring that startups listing on Pravo are domiciled in the U.S. or Western Europe and subject to those regulatory frameworks—we aim to mitigate some of these risks. However, no system can eliminate all risks. Please note that investors are still strongly encouraged to conduct their own due diligence.
What about currency risk?
All investments on our platform are conducted in USD (or EUR in special circumstances). Ukrainian startups on Pravo maintain Western bank accounts to hold these currencies until needed. Each company manages its own funds independently, and Pravo does not provide financial or advisory guidance regarding fund management. Investors should independently assess and understand the risks associated with currency fluctuations.
What is Pravo and how does it work?
Pravo is a technology platform that connects accredited U.S. investors with Ukrainian startups. If you qualify as an accredited investor, you can sign up to explore current investment opportunities. If you’re not an accredited investor (yet), we encourage you to register to receive our proprietary intelligence briefings and join the wait list for future opportunities. Please note that Pravo facilitates SEC-registered “Regulation D” fundraises and is not a broker–dealer. For more information, see the SEC’s definition of an accredited investor.
How much can I invest, and what are the costs?
There’s no set limit on the amount you can invest, other than the cap set by the issuing company. Each investment incurs a small processing fee (charged by our payment service providers) as well as an accreditation and background check fee mandated by SEC regulations. These fees are collected by third–party providers, not by Pravo, and we do not make money off of these fees.
How does Pravo make money?
Our aim is to keep the process transparent and cost–effective. Every dollar you invest goes directly to the issuing company—Pravo does not charge a fee on your investment capital, and we don’t charge a “success fee” to startups raising money. Instead, we receive a small equity stake in each startup listing on our platform.
Who decides which companies are listed?
Startups choose to list on Pravo. Through our trusted incubator and VC partners, companies undergo a vetting process to assess their suitability for U.S. accredited investors. However, this process does not replace independent legal or financial due diligence. A listing on our platform does not constitute an endorsement or guarantee of future performance. Investors should always perform their own research.
Getting Started
What are the “Intelligence Reports”?
Our in–house intelligence team—whose members have advised multinational corporations and ministries of defense—produces detailed, fact–based reports for our community. These reports are shared to keep you abreast of important developments and help you better understand the situation on the ground, but they do not constitute investment or legal advice.
How do I access the Intelligence Reports?
Previous reports are available under the “Intelligence Hub” section on our website. New reports are released approximately once a month (or under special circumstances) and are first sent via email to our subscribers. Make sure to sign up on our front page to receive updates before anyone else.
How do I sign up on Pravo?
Simply follow the steps on our signup page. We’ll ask for basic contact information to give you access to our intelligence reports. To invest via our fintech partner, additional details are required—similar to platforms like Robinhood, Republic, or WeFunder—to complete an “accreditation check.” If you don’t qualify as accredited but are interested in future opportunities, please contact us. We’re exploring ways to expand eligibility under other SEC regulations.
Why do I have to verify my identity when investing?
Our fintech partner must verify your identity to confirm your status as an accredited investor. This verification is essential to comply with SEC regulations and to continue offering a cost–effective option for startups. If you have any concerns during this process, please reach out to our support team at [email protected].
Investing Details
What payment methods are available?
When you decide to invest through our fintech partner, you can choose from credit card, ACH, or direct wire transfer. Each method has its own fee structure, so we recommend selecting the option that minimizes costs and is most convenient for you.
What happens after I invest?
After you complete your investment through our fintech partner’s portal, your funds are allocated to the company’s fundraising round. Depending on the structure of the raise—often via instruments such as SAFEs—you will receive legal documents outlining your rights and ownership details. Many startups raise money via “SAFEs.” If this is a new term for you, feel free to review Y Combinator’s article on the instrument. Following the round’s closure, updates will be provided directly by the company’s investor relations team. For specific tax advice, please consult a tax specialist.
What if I want to increase my investment?
If you wish to invest more in a company, you can either make an additional investment during an open fundraising round or wait for the startup to initiate a new round after closing the current one. Meanwhile, you may explore other opportunities to support startups listing on Pravo.
How can I exit or sell my investment?
Exit options depend on the terms of the specific investment offering. In most cases, liquidity events (such as subsequent fundraises, sales, or IPOs) will allow you to realize a return on your investment. However, investing in startups is highly illiquid. Be sure to review all issuance documents carefully to understand your rights and exit strategies. For more information on exiting startup investments, please refer to the SEC’s guidance.
Important Disclaimers
Does Pravo provide investment or legal advice?
The information provided on this platform is for general informational purposes only and does not constitute investment or legal advice.
What is Pravo’s role?
Pravo is solely a technology platform connecting investors with startups. We are not a broker–dealer and do not offer investment advisory services.
Does Pravo complete due diligence for me?
While we have unnegotiable standards for all startups listing on Pravo, all investments involve a high degree of risk. We strongly recommend that you perform your own research and consult with professional advisors before making any investment decisions.