Risk Warning
Full disclaimer
Neither Financial Pulse Limited nor Incluziv Limited offer investment advice to individual investors, their associated groups or the individual businesses seeking investment. This type of investment activity may expose an individual to significant risk of losing all of the property or other assets invested.The communications within the ‘angelgroups’ platform should be reviewed only by parties who are (i) Certified High Net Worth individuals, (ii) Certified or Self-certified Sophisticated Investors, (iii) High Net Worth Persons (as described above), (iv) Associations of High Net Worth or Sophisticated Investors, or (v) “authorised persons” within the meaning of the Act (together the “Authorised Recipients”). The communications in the ‘angelgroups’ platform should not under any circumstances be read by or distributed to any party other than the Authorised Recipients. We strongly advise that you seek independent advise from an appropriate, qualified advisor.
Financial Pulse Limited and Incluziv Limited take no responsibility for the information/forecasts/opinions/drawings/statements or any form of communication provided by the businesses be this through face-to-face pitches, through the ‘angelgroups’ platform or any other form of communication and this information is the sole responsibility of the business concerned.
Risk Warning
Due to the potential for losses, the FCA considers this investment to be high risk.
1. You could lose all the money you invest
If the business or businesses the Fund invests in fail(s), you are likely to lose 100% of the money you invested (ignoring the application of any tax reliefs). Most start-up businesses fail.
2. You are unlikely to be protected if something goes wrong
Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here: https://www.fscs.org.uk/check/investment-protection-checker/
Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA regulated firm, FOS may be able to consider it. Learn more about FOS protection here:
https://www.financial-ombudsman.org.uk/consumers
3. You won’t get your money back quickly
Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.
The most likely way to get your money back is if the business is bought by another business or lists its shares on an exchange such as the London Stock Exchange. These events are not common.
If you are investing in a start-up business, you should not expect to get your money back through dividends.
Start-up businesses rarely pay these.
4. Don’t put all your eggs in one basket
Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on anyone to do well.
A good rule of thumb is not to invest more than 10% of your money in high-risk investments:
https://www.fca.org.uk/investsmart/5-questions-ask-you-invest
5. The value of your investment can be reduced
The percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares.
These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment. If you are interested in learning more about how to protect yourself, visit the FCA’s website: https://www.fca.org.uk/investsmart