The risks, in plain language.
Every offering carries its own risk section. These are the ones that apply to all of them.
The risks
Five, stated plainly.
Early-stage and community businesses can fail. Equity ranks last if they do. Invest only what you can afford to lose.
The equity lists on Dealing after the raise, but there may be few buyers at the price you want, especially early. You may hold for longer than you planned.
The documents set out the plan; results can differ. Issuers report to their owners and answer questions in public, which helps you judge, and does not guarantee anything.
An offering is denominated in one currency; if yours is different, your return moves with the exchange rate.
Checked means the facts were checked by the regulated entity. It is not advice, and it does not mean the investment will do well.
Risks particular to kinds of business
Read the offering’s own section.
Results, player sales and league status move revenue year to year.
Weather, licensing, cancellations and a single bad year.
Most fail; the ones that succeed take years.
Defaults, vacancies, interest rates.
The manager, the mandate, the fees.
How we reduce what can be reduced
And what can’t be.
Vetting removes businesses that are not what they say they are. Structuring puts rights in writing and assets with a custodian. Eligibility keeps unsuitable investors out. Public Q&A and reporting keep issuers honest. None of it removes the risk that a good business, honestly run, fails anyway.
