Estimated reading time: two minutes. Private technology investments are high risk. This page is general information and must be reviewed for the precise instrument, issuer, investor category and communication before it is used as part of any financial promotion.
1. You could lose all the money you invest
Early-stage and technology businesses can fail. Technical performance, evidence, regulatory approval, manufacturing, customer adoption, financing and execution may not develop as expected. Returns are not guaranteed.
2. You may not be protected if something goes wrong
Do not assume that the Financial Services Compensation Scheme or Financial Ombudsman Service applies. Protection depends on the regulated status of the relevant firm and activity and does not cover poor investment performance.
3. You may not get your money back quickly
Private securities may be difficult or impossible to sell. A realisation can take years and may depend on a financing, sale or listing that never occurs.
4. Concentration increases risk
Putting a large proportion of available capital into one company, project, sector or illiquid investment increases exposure to a single failure. Consider independent advice and diversification.
5. Your interest may be diluted
Future financing can reduce the percentage owned by earlier investors. New securities may carry different economic or control rights.
Before proceeding
- Verify the legal issuer, instrument and rights.
- Read the complete risk factors and financial information.
- Test technical, IP, regulatory, manufacturing and commercial assumptions.
- Confirm investor eligibility and the lawful communication route.
- Take independent legal, tax and investment advice.
See the FCA InvestSmart guidance for further information.