This platform gives details of certain opportunities to invest in new businesses. Such investment 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 shares.
CQRS Limited (CQRS) licences this platform from Envestors Limited (Envestors). Neither CQRS nor Envestors advises on the merits or risks of investments or acts in any way for users of the platform. Before investing in a project about which information is given, potential investors are strongly advised to take advice from a person authorised by the Financial Services and Markets Act 2000 (FSMA) who specialises in advising on investments of this kind. Please be aware that none of the content included on the platform has been approved for the purposes of the relevant legislation concerning “financial promotions”.
Only qualified investors who are lawfully able to invest through the platform may do so. By making an investment you represent that you are lawfully entitled to make the investment without causing any person to be in breach of any applicable financial law or regulation (and waive any such right you may have in respect of such a breach). You also agree to indemnify CQRS (and, if CQRS so agrees, Envestors and its and their respective officers, shareholders and staff) in respect of any loss suffered by them as a result of a breach of the representation in the previous sentence.
You acknowledge that no users of this platform are treated as customers of CQRS or Envestors. Users may lose regulatory protections applicable to customers and in particular those for Retail customers concerning financial promotions and access to the Financial Services Compensation Scheme.
The following sections provide brief guidance on things to be aware of, but are not a substitute for securing individual advice from a properly authorised independent financial adviser.
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.
A majority of early-stage businesses fail or do not scale as planned. Therefore, investing in these businesses involves significant risk. It is likely that you may lose all, or part, of your investment. If a business you invest in fails, neither CQRS nor Envestors will pay you back your investment. Equally, you cannot expect to recover any investment made from the entity in to which the investment was made.
DEPENDENCE ON THE DIRECTORS.
It is highly likely that the success of investee companies is dependent on the ability of their directors to develop and maintain a strategy that achieves the company's investment objectives. If the directors do not have this ability or leave the business (for any reason), this should be expected to affect the investee company’s performance.
LACK OF OPERATING HISTORY.
Early stage companies typically have no substantive operating history, making it hard to evaluate likely performance. This increases the risk of any investment.
Past performance is not a reliable indicator of future performance. You should not rely on any past performance as a guarantee of future investment performance.
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. There is no “ideal” number, but a spread of risk is generally perceived as a wise investment strategy. 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 or the London Stock Exchange. Even successful companies rarely list shares on such an exchange.
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.
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.
ENTITY AUTHORISED AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY (“FCA”).
Details of the organisation responsible for overseeing all regulatory matters, including financial promotions, in relation to information provided on this Platform (the “Regulated Entity”) can be found here
. If for any reason this link does not display, or is unclear, the Regulated Entity is CQRS Limited, 14a High Street, Wendover, Aylesbury, Buckinghamshire, England, HP22 6EA, which is authorised and regulated by the Financial Conduct Authority (Firm Reference Number (FRN) 764618).