Most of the companies that at pitch at our finding events are start-up or early stage business. Making an investment in a startup or an early stage business may be very lucrative, but there is a certain amount of risk involved. If you wish to make an investment through InCrowd Capital Ltd, you need to recognise and appreciate a number of significant risk factors:
1. LOSS OF CAPITAL
Investment in private companies, particularly new businesses, carries risks as well as the possibility of high rewards. Accordingly, if you choose to invest in a business through our crowdfunding website, there is a high probability that you will lose all or part of the sum you have invested and will not therefore see a return or profit on your investment. You should not invest a greater sum through our crowdfunding website than you are prepared to lose or which you can afford to lose without altering your standard of living.
2. LIMITED LIQUIDITY
If you make an equity investment through InCrowd Capital Ltd then it will be highly illiquid. A business seeking funding through InCrowd Capital Ltd will not have a secondary market for its shares. In consequence you are unlikely to be able to realise your investment save in specific circumstances. If the company in which you have invested conducts an IPO or some other listing on a recognised securities exchange, or is the subject of an acquisition by another business then you may realise a return. Even successful businesses may, however, choose not to list their shares or sell their company, and therefore any investment you make through adultXfunding should be viewed as both long term and illiquid.
3. SCARCITY OF DIVIDENDS
It is highly unusual for an embryonic company to be in a position to make a distribution to its shareholders. Any profits earned tend to be reinvested into the business of the company and are not used to pay dividends. As a consequence you are unlikely to see any return on your investment in a start-up or early stage company for a considerable period of time or, indeed, at all. Even successful businesses may choose not to pay dividends.
4. DILUTION OF SHAREHOLDING
If you make an equity investment through InCrowd Capital limited the percentage of the investee company that you own may be reduced in the future. Such an event usually occurs through the issue of additional shares to raise more capital and is referred to commonly as dilution. The grant of options (or similar rights to acquire shares) to employees of, service providers to or certain other parties connected with, the company you have invested in may also result in dilution. Any additional shares issued may have the benefit of so-called “preferential rights”. Preferential rights may entitle the holders of such shares to priority dividends, priority on the distribution of the proceeds of sale of the company and other rights. Such preferential rights may have a detrimental effect on the value of your shares.
5. DIVERSIFYING YOUR PORTFOLIO
It is commonly recommended that investors should maintain a balanced portfolio and diversify their investments through different asset classes and a broad variety of different companies. This is particularly important in the case of startups, which carry a high degree of risk. This means that you should invest only a small proportion of your available investment funds in the types of business listed on our crowdfunding website. Most of your available investment capital should be invested in safer, more liquid assets.
6. PERSONAL DECISION TO INVEST
A decision to invest in a company is a personal decision by you, and no responsibility for the consequences of that decision is accepted by InCrowd Capital Ltd, or by any of its directors, agents, employees or other members.
IMPORTANT INFORMATION
Throughout our platform you will find links to external websites. Although we make every effort to ensure these links are accurate, up to date and relevant, we cannot take responsibility for pages maintained by external providers.
This website is not directed at or intended for publication or distribution to any person (natural or legal) in any jurisdiction where doing so would result in contravention of any applicable laws or regulations.
This information does not constitute an offer or solicitation in any jurisdictions in which such an offer or solicitation is not authorised, or to any person to whom it is unlawful to make such an offer or solicitation.
The information herein is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy securities in the United States to or for the benefit United States person (being residents of the United States or partnerships or corporations organised under the laws hereof). None of the products listed on this site have been registered in the United States under the Investment Company Act of 1940 and interests therein are not registered in the United States under the Securities Act of 1933.
Prospective investors should take appropriate independent investment advice and inform themselves as to applicable legal requirements, exchange control regulations and taxes in the countries of their citizenship, residence or domicile.
RISK WARNING
There are risks associated with the advice and investments that maybe outlined in this website. Past performance is not a guarantee of future performance. The price of assets can go down as well as up and may be affected by many variables such as changes in rates of exchange. An investor may not get back the amount invested. An investor may not receive any income distributions such as dividends. Many of the investment opportunities are illiquid and involve long term investment horizons.
This website is published solely for information purposes and does not constitute an offer, investment, legal, tax or other advice nor is it to be relied upon in making an investment decision. Information contained herein has been taken from sources considered by InCrowd Capital Ltd to be reliable but no warranty is given that such information is accurate or complete and it should not be relied upon as such. InCrowd Capirtal Ltd will not be responsible for any loss or damage of any kind which arises, directly or indirectly, and is caused by the use of any part of the information provided.
The investment opportunities we offer are only available to qualifying persons or legal entities as defined by your local regulator and on the basis that you are not subject to any jurisdictional restrictions prohibiting access to the information on this website or our investment events.
