BAFI (Business Angels Finance International LLP) are specialists in raising the right finance for your business.
Your capital is at risk if you invest in an Enterprise Investment Scheme (“EIS”), and you may lose some or all of your funds.
The Investments themselves and the type of underlying companies invested in by these Investments are usually very small UK companies, which could be materially and adversely affected by any of the risks described below and as a result the market price of the Investments may decline and you may lose all or part of your investment. This list is not comprehensive and additional risks not listed below may also have an adverse effect on the Investments. Please read the risk factors specific to each Investment set out in the relevant offer documentation.
Limited Secondary Market and Illiquidity of Shares of the Investments – EIS Funds typically invest in shares in unquoted companies and as a result there is no ready market or willing buyer of the shares making the shares illiquid.
Past Performance is No Guarantee of Future Performance – The value of shares in any investee companies may go down as well as up and Investors may not get back the full amount invested. Investors should not consider investing unless they can afford a total loss of their investment. Investments in unquoted shares carry higher risks than investments in quoted shares and involve a degree of risk as well as the opportunity of reward.
Smaller Company Risks – Investee companies may often be relatively small and highly dependent on the skills of a small group of key executives. Investments may often be especially vulnerable to changes in technology, government actions, changes in statute and competitive pressures. In particular, there may be changes to the EIS legislation, which may affect Investor’s tax positions.
Long Term Investment – generally, the Investments are considered to be long term investments.
Diversification – if the Investments do not raise sufficient funds to reach critical mass then it may be difficult to achieve a spread of investments and diversity, thereby increasing risk.
Investment in unquoted businesses carries high risks as well as the possibility of high rewards and an investor’s capital is at risk in making such investments. It is highly speculative and potential investors should be aware that no established market exists for the trading of shares in private companies. Please note that any tax treatments referred to in financial promotions approved or issued by Business Angels Finance International LLP will depend on the individual circumstances of the investor and may be subject to change in the future. Investors should be aware that other costs and taxes may arise for them in relation to making investments. All of Business Angels Finance International LLP fees are payable by the client companies to whom it provides services.