Risk warning

Capital depreciation

Most startups and early state businesses fail. If you invest in a business through LeadAngels platform, it is significantly more likely that you will lose all of your invested capital than see a return of capital or a profit. You should never invest more money through the platform than you can afford to lose without altering your standard of living.

Investment Risk

Any investment made through LeadAngels platform is subject to market fluctuations and there can be no guarantee or assurance that any increase in value will occur. Investment valuations and income gained from investments can fluctuate and may decrease so there is no certainty that an investor will get back any part of their investment. Any investment made through LeadAngels should be viewed as a long term and illiquid investment. The interests if investors are unsecured and rank subordinate to the interests of all creditors. If a company becomes unable to meet its scheduled debt repayments existing investors may realise less than their original investment. The market valuation and price at which an investment can be readily realised, along with the timing of any such realisation, may be influenced by a range of factors. Some may be specific to the investment whilst others may be macroeconomic reflecting changes to the wider economy. Any investor seeking to sell shares must find a willing buyer for such shares at an acceptable price. Consequently, the investor may face challenges in realising their investment.

Potential for dilution

Any investment you make through LeadAngels is likely to be subject to dilution. Dilution occurs when a business issues new shares to new investors at a later date, reducing the percentage ownership of existing investors in the business. 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. Dilution to your investment can also occur as a result of the grant of options (or other rights to acquire shares) to employees or other parties connected with the investee company.

Lack of Dividends

Startups and early stage businesses rarely pay dividends. This means that if you invest in a business through LeadAngels, even if the underlying business is successful you are unlikely to see any return of capital or profit until you are able to sell your shares in the investee company. Even for a successful business, this is unlikely to occur for a number of years from the time you make your investment.

Diversification

Investing in startups and early stage businesses should only be done as part of a diversified portfolio. This means that you should spread your financial exposure across various investments by investing relatively small amounts in multiple businesses rather than a large amount in a small number of businesses. It also means that you should invest only a small proportion of your investable capital in startups and ealrly stage businesses as an asset class, with the majority of your investable capital invested in safer, more liquid assets.

Limited Operating History

Businesses seeking to raise funds through LeadAngels platform are likely to be recently formed entities without substantial operating history upon which prospective investors can evaluate likely performance.

Limited Liquidity

Shares in LeadAngels investee companies may not be listed on a recognised market in the short to medium term and development of a secondary market is at the early stages. Consequently, it may be difficult for an investor to sell shares and investors may receive less than the amount invested. Share prices may also be subject to fluctuation.

Reliance on company directors

The success of many LeadAngels investee companies will depend to some extent on the ability of their directors to develop and maintain a strategy that achieves the company's investment objectives.

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 and should never be considered a reliable indicator of future performance.