Regulatory Compliance Risk: Operating within a highly regulated financial sector, Netcapital Inc. is subject to complex SEC and FINRA regulations, and any non-compliance or adverse changes in these rules could severely impact its operations, financial performance, and ability to conduct business.

Limited Investment Liquidity Risk: Investments made through the Netcapital platform typically carry high illiquidity, and while the company operates a secondary market, there is no guarantee of an active or robust market for selling these private securities, making it difficult for investors to exit positions.

Dependence on Deal Flow Quality Risk: The success of Netcapital's platform hinges on its ability to attract high-quality companies seeking funding; a decline in the caliber of issuers or a high failure rate among funded companies could erode investor trust and participation, negatively impacting future deal volume.