Risk warning

AngelEquity does not provide any financial, investment, legal or tax advice or recommendations to potential investors wishing to use our services. AngelEquity does not recommend or endorse any company which makes an offer through AngelEquity.

You need to carefully consider the risks, make your own assessments of any investment opportunity and seek independent advice before committing to any investment.

Angel investment is very speculative and inherently risky.

Investments typically occur in companies at the beginning of their lives or rapidly growing ventures. It is therefore often difficult to determine the likely success of the investments as they are often at a stage where the product, service or customer proposition is only just being developed and has not been tested in the market. Significant execution risk can also arise as new management teams are built to commercialise the business concepts and the companies seek to scale their operations outside of New Zealand.

There is potential that investors in making investments in investee Companies will lose part or all of their investment as a result of the nature of early stage investment.

Seed and Early Stage Investment:

Investment in seed and early stage private equity has a higher risk than traditional asset sectors and some investments may fail, which may result in a loss of some or all of investors’ capital.

Liquidity Risks:

There is potential low liquidity of the investments that may make it difficult to sell an investment.

Performance:

There is no guarantee of any level of return to investors. There may be no return or returns may be deferred or irregular. Even if the Company is successful, because of the nature of the investee Companies (high growth and reinvestment), there may not be any return for a number of years.
Investment Performance: There is a risk that the investment may perform poorly.

Dilution Risk:

Dilution of an investment may occur as the Company issues new shares and Investors invest in the business. An Investor may not have the capacity or may not wish to invest in a particular Company as it expands. Dilution will therefore occur. Whilst the value of the investment may or may not change as a result of this dilution (this will depend on the success or otherwise of the business), dilution will affect shareholder rights such as voting and value.

Warning – The law normally requires people who offer financial products to give information to investors before they invest. This information is designed to help investors make an informed decision.  By giving a Wholesale Investor Certificate as a requirement of joining AngelEquity, you acknowledge that, the usual rules do not apply to offers of financial products (including debt securities, equity securities and derivatives) made to you. As a result, you may not receive a complete and balanced set of information. You will also have fewer other legal protections for these investments.

Make sure you understand these consequences. Ask questions, read all documents carefully, and seek independent financial advice before committing yourself.