To help you understand the risks involved when investing in unlisted businesses, by either subscribing to shares, bonds or other equity instruments please read the following risk summary. Please be aware, before investing and diversifying your investments, you are strongly advised to seek independent financial, legal and tax advice. CrowdInvest does not provide investment advice or recommendations; you are responsible for your decision to make an investment in any opportunity presented to you on the CrowInvest platform. Only an independent financial, legal or tax advisor employed by you will be able to advise you on whether the opportunities presented on the CrowdInvest platform are suitable for your needs in view of your personal circumstances.
Diversification involves spreading your money across different types of investments with different risks to reduce your overall risk. However, it will not lessen all types of risk. Diversification is an essential part of investing. Investors should only invest a proportion of their available investment funds via CrowdInvest and should balance this with safer, more liquid investments. Only an independent financial advisor can advise you on diversification, this information is being provided to you as a guide only and should not be taken as investment advice.
Investing in shares (also known as equity) does not involve a regular return on your investment, unlike other instruments (bonds) which may offer interest paid regularly. Investing in equity can be rewarding when the instruments perform well, however, you should be aware that you could lose some, part or all of your original capital invested. Investing in early-stage businesses is high risk as not all will succeed, some may fail and some may not meet performance expectations at all, or in the time frame envisaged.