Loss of Capital
Investing in a Start-up could lead to lose of all of your invested capital. Your investment is not guaranteed by SGC Ventures or by the companies themselves, and you should not invest more money than you can afford to lose without altering your standard of living. Potential investors should note that an investment is subject to market fluctuations and there can be no assurance that any appreciation in value will occur. Investing through SGC Ventures is not covered by the Financial Services Compensation Scheme.
Diversification
Investing in start-ups should only be done as part of a diversified portfolio. This means that you should invest relatively small amounts in multiple businesses rather than a lot in one or two businesses. It also means that you should invest only a small proportion of your investable capital in start-ups as an asset class, with the majority of your investable capital invested in safer, more liquid assets.
Tax
Each time you invest, you must satisfy yourself prior to making any commitment that you understand and accept the tax consequences to you of making that particular investment, including the UK and foreign tax treatment of dividends, interest payments and capital gains or losses.
The UK government provides certain types of tax relief for investments in small businesses by UK tax resident individuals. Tax reliefs are not guaranteed and depend on the entities invested in maintaining their qualifying status, and may be withdrawn at any time by HM Revenue & Customs. Tax treatment is dependent on the individual circumstances of each client and may be subject to change in the future.
Advice
SGC Ventures does not give investment advice or provide analysis or recommendations regarding investment opportunities. Investments can only be made by members of SGC Ventures on the basis of information provided. SGC Ventures takes no responsibility for this information or for any recommendations, opinions or predictions.
Past Performance
Past performance is not a reliable indicator of future results. You should not rely on any past performance as a guarantee of future investment performance.
Future performance
Investee companies may provide forward-looking statements with respect to future results. Forward-looking statement are not guarantees of future results or performance and many different factors could cause actual results to be different from those that may be expressed or implied by such forward-looking statements. As such, forecasts are not a reliable indicator of future performance.
Dilution
Any equity investment you make through SGC Ventures may be subject to dilution. Dilution occurs when the company in which you invest issues more shares after you invest (for example in follow-on equity fundraising or in connection with employee options) so that your share of ownership of the company declines. These new shares may also have certain preferential rights to dividends, sale proceeds and other matters, and the exercise of these rights may work to your disadvantage.
Dependence on the Directors
The success of many investee companies on SGC Ventures will depend in part upon the ability of their directors to develop and maintain a strategy that achieves the company’s investment objectives.
Lack of Operating History
Many investee companies on SGC Ventures are recently formed entities and have no substantive operating history upon which prospective investors can evaluate likely performance.
Client Classification
Before being allowed to invest, you will need to be classified as an investor type. You will need to provide the relevant information to us, which you warrant to be truthful and accurate, in order that we can classify you. Please follow the steps when signing up to complete this process. If you no longer fall into at least one of the categories of investor available, you will give immediate written notice to SGC Ventures and you will not access, or try to access the service unless and until you fall into one or more of these categories again.
Jurisdiction
The information and services provided on the Site are not provided to, and may not be used by, any person or entity in any jurisdiction where the provision or use thereof would be contrary to applicable laws, rules or regulations of any governmental authority or where SGC Ventures is not authorised to provide such information or services. Some products and services described in the Site may not be available in all jurisdictions or to all clients.
This list of risk factors does not necessarily outline all possible risks involved. Prospective investors should read the relevant investee companies’ pitch documents and the SGC Ventures lender terms in their entirety and consult with their own advisers before deciding whether to invest. If you are unsure about any aspect of the information provided by the company, you should seek advice from an independent financial adviser.
Contacting Us
If you have any questions about this Risk Warning, please contact us at info@socs-goksoncapital.com