To help you understand the risks involved when investing on Koodoo, please read the following risk summary. Investors should only invest a proportion of their available investment funds through Koodoo as these investments are high risk. Your capital is at risk. Koodoo is targeted at investors that meet categorisation and appropriateness requirements and investors should make investments at their own risk and ensure that appropriate financial advice is sought if necessary.
Investment lossMost start-up businesses fail and therefore investing in these businesses involves significant risk. In the event of a business failing, as a shareholder in a company, it is likely that you may lose all, or part, or your investment.
If a business you invest in fails, neither the company you invest in nor Koodoo will pay you back. You should only invest an amount that you are willing to lose.
Lack of liquidityLiquidity is the ease with which you can sell your shares after you have purchased them. Shares purchased through Koodoo cannot be sold easily as they are unlikely to be listed on a secondary trading market. Even successful companies rarely list shares on such an exchange.
Without a public market to find a buyer for shares it may be more difficult to sell them for a cash return. These investments should be viewed as a long term and illiquid investment.
DilutionInvestments through Koodoo may be subject to future dilution. Dilution occurs when a company issues more shares and affects every existing shareholder who does not buy any of the new shares being issued. As a result an existing shareholders proportionate shareholding of the company is reduced.
Lack of dividendsDividends are payments made by a business to its shareholders from profits. Most of the companies on Koodoo are early stage, and these companies will rarely pay dividends to their investors. This means that you are unlikely to see a return on your investment until you are able to sell your shares.
Profits in early stage companies are typically re-invested into the business to fuel growth and build shareholder value.
DiversificationDiversification involves spreading your money across multiple investments in an attempt to reduce risk. It is an essential part of investing. Investors should only invest a proportion of their available investment funds through Koodoo as these investments are high risk.
CryptocurrencyCryptocurrency investments carry substantial risk of loss and are not suitable for all investors.
Anyone investing using cryptocurrencies can be impacted by volatility in the price of the crypto asset that is typically considerably larger than price swings of fiat currency. Cryptocurrencies are also nascent in their development lifecycle and not widely adopted yet. When making an investment using cryptocurrencies investors should understand that regulation is minimal compared to fiat currency and its technological basis leaves investments more open to cyberattacks and theft, with no way to retrieve lost or stolen funds.
Investment informationThis information may not be disseminated, distributed or used without the prior written consent of Koodoo Global Ltd and Sapia Partners LLP (the “Companies”). This investor document is a summary and is not an offering or a solicitation of an offer to purchase an interest. Any offers or solicitation may only be made by means of delivery of documentation that contains important information (including investment objective, policies, risk factors, fees, tax implications, and accredited investor qualifications) relating to such investment opportunity. There is no guarantee that the investment objective will be achieved. Moreover, the past performance of the investee company should not be construed as an indicator of future performance.
Without limitation, this document does not constitute a recommendation to enter into any proposed transaction or investment. You should not construe the contents of this document as legal, tax, investment or other advice. By accepting this document, you acknowledge that the Companies are not acting as your broker, financial advisor, in any other fiduciary capacity or otherwise as your advisor or agent with respect to transaction or investment. The information contained in this document is based on material that Companies believe to be reliable. Assumptions, estimates and opinions contained in this document constitute information we received from reliable sources as of the date of the document and are subject to change without notice. Neither the Companies or any of their respective officers, directors, employees, agents, controlling persons or affiliates makes any representation or warranty, expressed or implied, as to the accuracy or completeness of the information contained in this document, and nothing contained herein is, or shall be relied upon as, a promise or representation, whether as to past or future facts or results. The market analysis, projections, targeted returns, estimates and similar information, including all statements of opinion and/or belief contained in this document (collectively, “forward-looking information”), are subject to inherent uncertainties, contingencies and qualifications and are based on a number of assumptions. Forward-looking information involves significant elements of subjective judgment and analysis that may or may not be correct.
SEIS/EIS Eligible InvestmentsOften, SEIS and EIS companies take longer than three years to exit and produce a return to investors, perhaps five years or longer. You should not, therefore, invest funds which you might rely on during that period. In addition, SEIS and EIS investments are categorised as high risk and potential investors should be willing to bear a loss of all of their capital. Koodoo cannot guarantee that investments will maintain SEIS or EIS status. Koodoo is targeted at investors who sufficiently understand these risks and make their own investment decisions.
The availability of any tax relief, including EIS and SEIS, depends on the individual circumstances of each investor and of the company concerned, is only available for UK investors in qualifying companies and may be subject to change in the future. If you are in any doubt about the availability of any tax reliefs, or the tax treatment of your investment, you should obtain independent tax advice before proceeding with your investment.
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