Risk Warnings

Risk Warnings2018-03-23T12:50:47+00:00

RISK WARNING

This investment platform (the “Platform”), is operated under license from Delio Limited (“Delio”) by the organisations identified at the bottom of this page (the “Licensee”).

Investment in new business carries high risks as well as the possibility of high rewards. It is highly speculative and potential investors should be aware that (a) they could lose the total value of their investment and (b) no established market exists for the trading of shares in private companies, making it difficult to sell your shares. Before investing in a project about which information is given, potential investors are strongly advised to take advice from a person authorised by the financial service and markets Act 2000 (FSMA) who specialises in advising on investments of this kind. Neither Delio, nor the Licensee can advise on the merits or risks of investments.

Please see below some information relating to investing equity in early-stage businesses which are not quoted on any stock exchange:

ONLY INVEST WHAT YOU CAN AFFORD TO LOSE

Investors should only invest a small proportion of their available investment funds and should balance this with safer, more liquid investments. The majority of early-stage businesses fail or do not scale as planned. Therefore, investing in these businesses may involve significant risk. It is likely that you may lose all, or part, of your investment. If a business you invest in fails, neither the company, nor the Licensee, nor Delio, will pay you back your investment.

It is advisable to invest across different companies, and not just a single company in order to diversify risks.

DEPENDENCE ON THE DIRECTORS

It is highly likely that the success of many investee companies will depend in part upon the ability of their directors to develop and maintain a strategy that achieves the company’s investment objectives. Should the directors leave the business for any reason, then performance in the investee company is likely to deteriorate.

LACK OF OPERATING HISTORY

Some companies are relatively early stage and, as such, have no substantive operating history upon which prospective investors can evaluate likely performance.

PAST PERFORMANCE

Past performance is not a reliable indicator of future performance. You should not rely on any past performance as a guarantee of future investment performance.

FORECASTS

Forecasts are not a reliable indicator of future performance.

LACK OF LIQUIDITY

Liquidity is the ease with which you can sell your shares after you have purchased them. Equity investments cannot be sold easily and they are unlikely to be listed on a secondary trading market, such as AIM, Plus or the London Stock Exchange. Even successful companies rarely list shares on such an exchange.

DIVIDEND POLICY

Dividends are payments made by a business to its shareholders from the company’s profits. Most of the companies featured on the Platform 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.

DILUTION

Equity investment in shares may be subject to dilution, if the investee company issues more shares. If there are “pre-emption rights” in the investor agreement, it means you will be offered a chance to buy more shares, if there is a further fundraising, which will enable you to maintain your percentage shareholding in the company. Dilution affects every existing shareholder who does not buy any of the new shares being issued. As a result, an existing shareholder’s proportionate shareholding of the company is reduced, or ‘diluted’- this has an effect on a number of things, including voting, dividends and value.

ENTITY AUTHORISED AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY (“FCA”)

The organisation responsible for overseeing all regulatory matters, including financial promotions, in relation to information provided on this Platform (the “Regulated Entity”) is Enterprise Investment Partners LLP which is authorised and regulated by the Financial Conduct Authority (FRN: 604439).

FINANCIAL SERVICES COMPENSATION SCHEME

Investors using this Platform are treated as customers of the Regulated Entity and therefore have the potential to be compensated out of the Financial Services Compensation Scheme established and operated by the Financial Conduct Authority in the event that the Regulated Entity should fail in the conduct of its FCA regulated activities. However, investors will not be able to claim under the Financial Services Compensation Scheme merely because an investee company displayed on the Platform fails. Details of the Financial Services Compensation Scheme may be found at www.fscs.org.uk

This website uses cookies and third party services. Deepbridge Syndicate is designed for non-advised, appropriate investors looking to invest into single EIS-eligible companies, with a minimum investment of £10,000. For persons not meeting this criteria please visit www.deepbridgecapital.com.RISK WARNING: Your capital is at risk. The risks include: the lack of liquidity in this market in terms of being able to sell shares; the loss of the value of investment; dilution of shareholding and investing in single company investment should be done only as part of a diversified portfolio. When you invest any loss in value will not be covered by the Financial Services Compensation Scheme. Please read full Risk Warning. By continuing to view this website you are confirming you have read the above notification and risk warning.

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