Risk Summary

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Risk Summary for CS Capital Funding Investments

Estimated reading time: 2 min

 

At CS Capital Funding, we prioritize transparency and your understanding of the potential risks associated with our investments. Please take a moment to review the key risks involved:

 

  1. Risk of Losing Your Investment

- Most of our investments involve shares in start-up businesses. It's essential to recognize that investing in such early-stage ventures carries a significant risk. Many start-up businesses fail, and investors may lose their entire investment.

- We strongly advise conducting thorough research on the businesses you plan to invest in. Assess their expected performance and viability before making investment decisions.

  1. Limited Liquidity and Lengthy Investment Horizon

- Even in the case of a successful business, it can take several years to recoup your investment. Early recovery of funds is uncommon.

- The most likely scenarios for retrieving your investment include a business acquisition or listing on a stock exchange, such as the London Stock Exchange. However, these events are not frequent in the start-up world.

- Start-up businesses typically do not provide returns through dividends, so you should not anticipate recovering your investment this way.

- While a secondary market like CS Capital Funding Secondary Market may offer the opportunity to sell your investment early, there is no assurance of finding a buyer at your desired price.

 

  1. Diversify Your Investments

- Placing all your funds into a single business or type of investment poses significant risk. Diversifying your investments across various assets reduces your dependence on the performance of a single investment.

- A general guideline is to avoid investing more than 10% of your funds in high-risk investments.

 

  1. Dilution and Reduction of Investment Value

- In the case of share-based investments, the percentage of the business you own can decrease if the business issues additional shares. This could lead to a reduction in the value of your investment, depending on the business's growth.

- New shares may carry rights that your existing shares do not possess, potentially diminishing your chances of obtaining returns on your investment.

 

  1. Limited Protection

- It's important to note that protection from the Financial Services Compensation Scheme (FSCS) does not cover poor investment performance. The FSCS primarily applies to claims against failed regulated firms.

- The Financial Ombudsman Service (FOS) protection also does not extend to investment performance. While FOS can address complaints against FCA-regulated platforms, it does not address investment returns.

 

For additional insights on safeguarding your interests, you can visit the FCA's website [here](https://www.fca.org.uk). To explore further information about investment-based crowdfunding, we recommend visiting the FCA's website [here](https://www.fca.org.uk).

 

Your informed investment decisions are essential to us at CS Capital Funding, and we encourage you to reach out with any questions or concerns you may have.