By using the Platform in any capacity the Investor acknowledges and agrees that they have read and understood the following risks and warnings. If an Investor does not understand any of the risks or warnings set out below they should take advice from an Independent Financial Advisor, solicitor or similar qualified professional before using the Platform. The following list of risk factors is not intended to be exhaustive, nor a complete explanation of the risks involved. Any decision to make an investment through this platform is made entirely at the investor’s own risk.
Potential for Loss. Investing in any early stage businesses is inherently risky and most fail. There is a significant chance that an investor will lose all of the capital that is invested in Campaigns that appear on the Platform. The Investor is strongly advised to invest no more in these opportunities than you can afford to lose.
Liquidity Risk. It is highly unlikely that, in the short to medium term, any secondary market for shares that an Investor acquires in early stage companies (the “Company”) seeking investment on the Platform will develop, nor is it likely that any of them will be listed on any recognised stock market. As such you are unlikely to be able to sell your shares unless and until a buyer makes an offer for the whole of the Company’s issued share capital or the Company is listed on a Stock Exchange.
Dividends. Early stage companies very rarely pay dividends so Investors are unlikely to receive any return on their investment unless and until an offer is made by a buyer for the whole of the Company’s issued share capital or the Company is listed on a Stock Exchange.
Dilution. Any investment an investor makes can be subject to dilution. It is likely that the Investee will need to raise additional capital in the future, which is likely to require one or more share issues to existing and/or new investors. Therefore, the proportion of the Company which an Investor’s shares correspond to at the time of the original investment may subsequently be diluted by such subsequent share issue(s). The original investment may also be subject to dilution as a result of warrants or options to employees, service providers or certain other parties connect to the Company. Any new shares may also have preferential rights to dividends, sale proceeds and other preferential treatment.
Projections and forecasts. The Listing, Business Summary or Information Memorandum may contain certain statements, estimates, projections, forecasts and data provided by the Investee with respect to the anticipated future performance of the Company’s business and/or its industry. Such statements, estimates, projections, forecasts and data reflect various assumptions by the Company’s management concerning anticipated results, which assumptions may or may not prove to be correct. Actual results may vary from such statements, estimates, projections, forecasts and data, and such variations may be material.
Operating history. Many of the Investees that appear on our platform are recently formed early stage companies; they may lack any trading or other operating history or accounts. The success of the Company will depend upon the ability of the Investee to develop and deliver on a strategy to achieve that Company’s objectives.
Diversification. Given the risks involved in investing in early stage companies, Investors are advised to adopt a diversified portfolio of investments and to ensure that at any point an Investor can afford to lose the amount of capital invested in the early stage companies. It is recommended that the maximum aggregate amount invested in the opportunities on the Platform is limited to an amount an Investor can afford to lose. A sensible threshold is not more than 10% of your net liquid assets. If a potential investor does not have disposal income of this nature to invest, it is recommended not to proceed to use this Platform.
Tax treatment of shares. Tax reliefs are not guaranteed and depend on the companies invested in, maintaining their qualifying status. They may also been withdrawn any time by HM Revenue and Customs at any time. The tax treatment of EIS and SEIS schemes depend on the individual circumstances of each client or investor, and maybe subject to change in the future.