Risks

Investing always involves risk, and early-stage ventures are among the riskiest due to uncertainties about the company's future success. To manage risk, it's advisable to diversify your investments across multiple opportunities and consider seeking advice from a financial professional.

Project Risk

Project Risk refers to risks inherent to a specific project on the platform. These may include factors such as insufficient funding, legal issues, technological challenges, operational difficulties, or reputational damage.

Sector Risk

Sector Risk arises from factors affecting the company's industry. This can include changes in the economy, technological advancements rendering products obsolete, regulatory shifts, market volatility, environmental concerns, or political instability.

Default Risk

Default Risk is the possibility that a company may become insolvent or unable to meet its financial obligations. Causes can include mismanagement, fraud, lack of expertise, or overly optimistic business projections.

Returns Risk

Returns Risk refers to the possibility that the returns from your investment may be lower or take longer to materialise than expected, or you may lose your entire investment. Startups have a higher likelihood of failure compared to established companies, so returns are not guaranteed and may be delayed.

Liquidity Risk

Liquidity Risk is the risk that you may not be able to sell your investment when desired or at your preferred price due to a lack of buyers. Shares in private companies are not as easily sold as publicly traded stocks. Therefore, you should be prepared to hold your investment for an extended period—potentially several years—before realising a return.

Platform Risk

Platform Risk involves the possibility that the crowdfunding platform may be unable to provide its services temporarily or permanently. As intermediaries, platform failures could significantly impact your investments.

Other Risks

Other Risks include:

• Currency Risk: Fluctuations in exchange rates may affect your returns if your domestic currency differs from the investment currency.
• Concentration Risk: Investing a large portion of your portfolio in a single company increases your exposure to that company's performance.
• Timing Risk: Making investment decisions at inopportune times can negatively impact your returns.

We encourage you to thoroughly assess these risks and consider your personal risk tolerance before investing. Diversifying your investments and seeking professional financial advice can help manage these risks.