GeneralInvesting in startups and early stage
businesses can be very rewarding, but it involves a number of risks and challenges.
If you choose to invest through BnkToTheFuture.com, you need to be aware of and
accept five important considerations.
The following list of risk factors
does not purport to be a complete enumeration or explanation of the risks involved
in investing in any of the companies pitching for investment via the BnkToTheFuture.com
website. Each individual company will be different and specific risks will attach
to that investment. Prospective investors should review the individual companies’
pitches in their entirety and consult with their own advisers before making any
decision to invest.
1. IlliquidityAny investment you make through
the platform will be highly illiquid. While secondary markets exist, there is no
highly liquid secondary market for the shares of the investee company. This means
that you are unlikely to be able to sell your shares until and unless the investee
company floats on a securities exchange or is bought by another company. Even for
a successful business, a flotation or purchase is unlikely to occur for a number
a years from the time you make your investment.
in startups should only be done as part of a diversified portfolio. This means that
you should invest relatively small amounts in multiple businesses rather than a
lot in one or two businesses. It also means that you should invest only a small
proportion of your investable capital in startups as an asset class, with the majority
of your investable capital invested in safer, more liquid assets.
3. Rarity of
DividendsStartups and early stage businesses rarely pay dividends. This means
that if you invest in a business through the platform, even if it is successful
you are unlikely to see any return of capital or profit until you are able to sell
your shares in the investee company. Even for a successful business, this is unlikely
to occur for a number of years from the time you make your investment.
investment you make through the platform is likely to be subject to dilution. This
means that if the business raises additional capital at a later date, it will issue
new shares of the investee company to the new investors, and the percentage of the
investee company that you own will decline. These new shares may also have certain
preferential rights to dividends, sale proceeds and other matters, and the exercise
of these rights may work to your disadvantage. Your investment may also be subject
to dilution as a result of the grant of options (or similar rights to acquire shares)
to employees of, service providers to or certain other parties connected with, the
5. Loss of CapitalMost startups fail, and if you invest
in a business through the platform, it is more likely that you will lose all of
your invested capital than that you will see a return of capital or a profit. You
should not invest more money through the platform than you can afford to lose without
altering your standard of living.
COMPANY DETAILSBNK TO THE
FUTURE (HK) Limited (Company Number 2205217) is Incorporated and registered in Hong
Kong under the Companies Bill 2011. This website is operated by BNK TO THE FUTURE
Limited (Company Number CO-296093) Incorporated and registered in Cayman Islands
under the Companies Law 2013. BNK TO THE FUTURE Limited is registered with the Cayman
Islands Monetary Authority (CIMA).