Loss of Capital
When you invest in a Startup you are investing in an early-stage startup business (“Startup”). The risk of your investment is therefore very closely connected to the risks attaching to the Startup and whether it succeeds in making its business model work. Most fail, and therefore when investing through Cur8 Capital it is more likely you will lose your invested capital than see a return. Because of this you should not invest more than you can afford to lose.
Cur8 Capital does not make investment recommendations to you. No communications from Cur8 Capital should be construed as an investment recommendation. If you have any doubt about the suitability of investing in this opportunity (including the financial or tax implications), you should seek advice from an appropriately qualified professional. Cur8 Capital provides you this document and investment opportunity on the basis that you are a self certified High Net Worth Investor or Sophisticated Investor, as such terms are understood pursuant to the Financial Conduct Authority's Handbook. Cur8 Capital nor any of its group companies provide investment or tax advice. Your capital is at risk.
Dividends are rarely issued by startups; this means that even in the event that the business is successful you are unlikely to see a return of capital until you are able to sell your shares. Typically, this will not occur until a number of years after the date of your investment.
All investments made through Cur8 Capital are likely to be subject to dilution. If the business raises further capital at a later date it will issue new shares to the new investors, subsequently the percentage of the investee company you own will decline. These new shares may be subject to preferential rights and these may work to your disadvantage. Dilution may also occur as a result of the grant of options to employees of, service providers to, or certain other parties connected with, the investee company.
Cur8 Capital invests into each Startup that it presents to the syndicate. Whilst Cur8 Capital will carry out thorough due diligence on Startups for its own benefit before deciding to invest in them, that is no guarantee that a Startup will ultimately succeed. Indeed, most Startups typically fail. Therefore, it is prudent to diversify your risk and invest in a diversified range of Startups. We share a summary of our due diligence with investors and you will have the opportunity to review further Startup documentation as well as speak to the directors of the Startup.
Lack of history, past performance and forecasts
Due to the early-stage nature of the businesses Cur8 Capital invests in, many companies do not have a substantive operating history upon which an investor may wish to evaluate likely performance. Both the previous performance and forecast of the business are not reliable indicators of future performance and therefore should not be used as a guarantee.
You should be aware that investments into Startups are typically illiquid and hard to exit from. You would have to find your own buyer should you wish to exit, and the Startup would typically have to approve such purchase. You should therefore be prepared to hold onto the investment for at least 5 years and possibly longer without needing access to the capital you have invested.
Certain investments may qualify for tax relief, however this is not guaranteed. It depends on the entities invested in maintaining their qualifying status; this may be withdrawn at any time by the HM Revenue & Customs. The EIS and SEIS tax relief schemes are dependent upon the individual circumstances of each client or investor.
This deal is brought to you by Cur8 Capital, a trading name of IFG.VC Limited ("IFG.VC"), a subsidiary of Islamicfinanceguru Limited ("IFG"). When you invest through Cur8 Capital, we will hold the legal title to your shares in a nominee company which is controlled by IFG. You will own the beneficial interest in your shares.
If the Startup ultimately fails and goes into liquidation and you do not receive any remuneration, you will not have any right to compensation and the Financial Services Compensation Scheme does not apply to this investment.
IFG.VC Limited (No. 943736) is authorised and regulated by the Financial Conduct Authority.
IFG.VC Limited is registered with the Information Commissioner's Office and appears in the Data Protection Register under (No. ZA786792).
Financial Services Compensation Scheme
We are a participant in the Financial Services Compensation Scheme (FSCS). You may be able to make a claim on this Scheme if we default in our obligations to you under FCA Rules. Further information can be obtained from their website, which is at http://www.fscs.org.uk. Note that the FSCS is not available to cover investment losses. Your capital is at risk.