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Data Room Checklist

Apr 24, 2024 | Investment Case Resources

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This website is a financial promotion for the purposes of Section 21 of FSMA. It is issued by Carbon13 Capital Ltd (FRN: 953220), an Appointed Representative of Kin Capital Partners LLP FRN:656789, an AIFM as defined by the AIFMD, who have approved it, on 19/01/24, and who are authorised by the FCA. Carbon13 Capital Limited (FRN: 953220) is also an Appointed Representative of ET Capital Limited, another FCA authorised and regulated entity (FRN: 148594), specifically for the management of the Carbon13 SEIS Funds I & II.
This website is not an offer to buy or sell securities and does not constitute a Direct Offer Financial Promotion. Applications for investment may only be made on the basis of the relevant documentation, copies of which are available on request. No reliance is to be placed on the information contained in this website in making such an application. Information herein is not intended to, nor should be taken to, constitute advice. This material is directed only at persons in the UK.
Please note that the content and information provided on this platform may be confidential and for information and illustration purposes only. None of the documentation made available to you via this platform is legally binding, constitutes any financial or other obligations and must not be considered as legal, commercial or any other advice or recommendation by Carbon13 Group or any of its affiliates.

Carbon13 is a trading name of AQ1443 Ltd. AQ1443 Ltd is a private limited company incorporated in England and Wales under company number 13994528 with its registered address at 843 Finchley Road, London, NW11 8NA. AQ1443 Ltd is authorised and regulated by the Financial Conduct Authority (FCA), Firm Reference Number 978496.

Copyright ©2023 Carbon13 Salisbury House, Station Road, Cambridge, CB1 2LA. All rights reserved.

RISK SUMMARY

Estimated reading time: 2 min

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

1. You could lose all the money you invest

If the business you invest in fails, you are likely to lose 100% of the money you invested. Most start-up businesses fail.

2. You are unlikely to be protected if something goes wrong

Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here.
The Financial Ombudsman Service (FOS) will not be able to consider complaints related to this firm] or [Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection here.

3. You won’t get your money back quickly

Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.
The most likely way to get your money back is if the business is bought by another business or lists its shares on an exchange such as the London Stock Exchange. These events are not common.
If you are investing in a start-up business, you should not expect to get your money back through dividends. Start-up businesses rarely pay these.

4. Don’t put all your eggs in one basket

Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
A good rule of thumb is not to invest more than 10% of your money in high-risk investments.

5. The value of your investment can be reduced

The percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares.
These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment.

If you are interested in learning more about how to protect yourself, visit the FCA’s website here.

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