The significance of private markets to institutional investors is going to continue to expand over the coming years as we adjust to higher inflation. Read why.
Investing, particularly in early stage and other growth-focused businesses, carries risks, including loss of capital and illiquidity.
To help you understand some of the key risks, please read this risk summary before you invest in any opportunity available on the Globacap Platform. If you are in any doubt about the risks associated with any investment, you should seek independent professional advice before making any investment decision.
Risk of Loss
Your capital is at risk. Investments in any asset may lose some or all of their value. You may not necessarily get back the amount you invested. In making any investment you must accept all risks associated therewith, including the risk of total loss. Private or unlisted investments may not be readily realizable, and can be riskier and have more
Private investments may be highly illiquid and there may be no market for those investments. This means that you may not be able to sell or dispose of your investments at a later date if you wished to do so. This may also reduce the value of any assets. You must be prepared to hold any investment indefinitely, and should not invest any amounts which you may need access to in the future.
Diversification involves spreading your money across different types of investments with different risks or characteristics with the aim of reducing your overall risk or the impact of any risks associated with any particular investment or groups of investment. However, it will not lessen all types of risk. Diversification is an essential part of investing. Investors should only invest a proportion of their available investment funds into investments available on the Globacap Platform and should ensure (taking independent professional advice from their financial advisers where needed) that their overall investment portfolio is appropriately diversified based on their circumstances, experience, sophistication, and risk appetite.
Past performance is not necessarily a guide to future performance. The value of an investment and the income from it can fluctuate, it may be affected by one or more risks and exchange rate variations and you may not get back any amount invested. Forward looking or aspirational statements made by an entity raising capital on the Globacap Platform may not be realised.
Any investment you make in a business through the Globacap Platform may be subject to dilution in the future. This could be due to the business raising additional capital in the future, the granting of shares to employees or founders, or the vesting of existing or future shares, options, or convertible investments. If a business issues new shares to new investors, the percentage of the business that you own will decline. New shares may also have different rights to dividends, voting rights, and so on, which may be better than the rights attaching to your shares. The exercise of these rights may work to your disadvantage.
Early Stage Businesses
If an investment is in or associated with an early stage businesses or growth-focused business then it will be subject to heightened risks. Early stage businesses are at greater risks of difficulties or business failure, and are inherently more risky. The majority of start-up or early stage businesses fail or do not scale as planned and therefore investing in these businesses may involve significant risk. It is likely that you may lose all, or part, of your investment. You should only invest an amount that you are willing to lose and should only consider investing in early stage businesses as part of an appropriately diversified portfolio. If a business you invest in fails, you will lose all of your investment.
Foreign Exchange Risk
Deals on the Globacap platform may be denominated in different currencies which may be different to your nominated currency. Therefore, the value of any investment in your nominated currency will change in line with fluctuations in the exchange rate between the denominated currency of the relevant investment and your nominated currency.
In addition, for certain deals, investments may be permitted in multiple currencies other than the deal currency (a ‘cross currency order’), which may include cryptocurrencies. If you invest in a currency other than the deal currency, your investment currency will be converted to the deal currency at the time of your investment. If the deal is cancelled or your investment does not proceed for any reason, any amounts returned to you will be that amount of deal currency (not your investment currency). Depending on fluctuations in the currencies, the value of your investment and any amounts returned to you in the deal currency may be worth less (or more) than your original investment currency amount. You will be subject to all foreign exchange and conversion risks associated with the investment currency and the deal currency at all times. Volatility in those currencies or cryptocurrencies may magnify those risks.
You are solely responsible for determining the tax requirements associated with any investment and/or your holding, dealing, selling or otherwise any investment. You must seek independent tax advice in connection with investing in securities over the Globacap Platform, which may result in adverse tax consequences to you, including withholding taxes, income taxes, and tax reporting requirements.
You must assess each investment yourself, and accept all risks associated with such investment, based on your own expertise and judgement and such independent professional advice (including legal, tax, regulatory, accounting, financial and investment advice) from your third party advisers as you consider appropriate in your particular.
Globacap is not acting as your advisor and is not providing you with any financial advice, legal advice, tax advice, or any other form of advice. It is your responsibility to obtain such advice, including legal, tax, accounting, regulatory, investment, financial and other professional advice, as you deem appropriate based on your particular circumstances, knowledge and experience.
Investments available on the Globacap Platform are not associated with Globacap, and are not sponsored, endorsed, guaranteed or recommended by Globacap. The existence of an investment on the Globacap Platform is not an endorsement or recommendation by Globacap of that investment. The approval of a communication as a financial promotion is not an endorsement of that communication, or any form of recommendation relating to that financial promotion.
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