This investment platform (the “Platform”), is operated under license from Envestors Limited (“Envestors”) by Bermuda Investor Community Limited (the “Licensee”).
Investment in new business carries high risks as well as the possibility of high rewards. It is highly speculative and potential investors should be aware that (a) they could lose the total value of their investment and (b) no established market exists for the trading of shares in private companies, making it difficult to sell your shares. Before investing in a project about which information is given, potential investors are strongly advised to seek professional advice from a person who specialises in advising on investments of this kind. Neither Envestors, nor the Licensee can advise on the merits or risks of investments.
Please see below some information relating to investing equity in early-stage businesses which are not quoted on any stock exchange:
ONLY INVEST WHAT YOU CAN AFFORD TO LOSE.
Investors should only invest a small proportion of their available investment funds and should balance this with safer, more liquid investments. The majority of early-stage businesses fail or do not scale as planned. Therefore, investing in these businesses may involve significant risk. It is likely that you may lose all, or part, of your investment. If a business you invest in fails, neither the company, nor the Licensee, nor Envestors, will pay you back your investment.
DEPENDENCE ON THE DIRECTORS.
It is highly likely that the success of many investee companies will depend in part upon the ability of their directors to develop and maintain a strategy that achieves the company's investment objectives. Should the directors leave the business for any reason, then performance in the investee company is likely to deteriorate.
LACK OF OPERATING HISTORY.
Some companies are relatively early stage and, as such, have no substantive operating history upon which prospective investors can evaluate likely performance.
FORECASTS.
Forecasts are not a reliable indicator of future performance.
LOOK TO SPREAD YOUR RISK BY DIVERSIFYING.
You can reduce your risk by spreading your investment across multiple deals, rather than investing all available funds into one deal. Many investment professionals suggest you invest in a minimum of 5 (ideally 10) deals.
LACK OF LIQUIDITY.
Liquidity is the ease with which you can sell your shares after you have purchased them. Equity investments cannot be sold easily and they are unlikely to be listed on a secondary trading market, such as AIM, Plus, the New York Stock Exchange or London Stock Exchange. Even successful companies rarely list shares on such an exchange.
DIVIDEND POLICY.
Dividends are payments made by a business to its shareholders from the company’s profits. Most of the companies featured on the Platform will rarely pay dividends to their investors. This means that you are unlikely to see a return on your investment until you are able to sell your shares.
DILUTION.
Equity investment in shares may be subject to dilution, if the investee company issues more shares. If there are “pre-emption rights” in the investor agreement, it means you will be offered a chance to buy more shares, if there is a further fundraising, which will enable you to maintain your percentage shareholding in the company. Dilution affects every existing shareholder who does not buy any of the new shares being issued. As a result, an existing shareholder's proportionate shareholding of the company is reduced, or ‘diluted’- this has an effect on a number of things, including voting, dividends and value.
THE BERMUDA MONETARY AUTHORITY (“BMA”)
The organisation responsible for overseeing all regulatory matters, including financial promotions, in relation to information provided on this Platform is Bermuda Investor Community Limited, which is operating in accordance with an exemption from the BMA pursuant to section 3 of the Investment Business (Exemption) Order 2004.
NOTICES TO RESIDENTS OF BERMUDA
Securities may be offered or sold in Bermuda only in compliance with the provisions of the Investment Business Act 2003, as amended and the Exchange Control Act 1972, as amended and related regulations of Bermuda which regulate the sale of securities in Bermuda. General permission under the Exchange Control Act 1972 of Bermuda, as amended, (and regulations made thereunder) has been given by the BMA for the issue (and subsequent transfer) of the preference shares being offered pursuant to this confidential investor package to persons not resident in Bermuda for exchange control purposes.
Bermuda Investor Community Limited has not been authorised or registered as a Bermuda Investment Fund, nor has Bermuda Investor Community Limited been designated as an overseas fund and as such is not supervised or regulated under the Investment Funds Act 2006 of Bermuda, as amended, Bermuda Investor Community Limited should be viewed as an investment suitable only for Investors who can fully evaluate and bear the risks Involved.
The BMA has not reviewed individual investments of the platform and accepts no responsibility for the financial soundness of any proposal or for the correctness of any of the statements made or opinions expressed herein.
No offer of offered shares will be made to the public in Bermuda except in accordance with Bermuda law. The BMA, the Bermuda Minister of Finance and any other relevant Bermuda authority or government body accept responsibility for the financial soundness of any proposal or for the correctness of any of the statements made or opinions expressed herein.
