Envestors MENA (“Envestors”) is licensed by the Dubai Economic Department, license number 702911, registered address at Envestors MENA, Office #403, MAZE Tower, Sheikh Zayed Road, Dubai, UAE.
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 no established market exists for the trading of shares in private companies.
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. A number of early-stage businesses fail or do not scale as planned and therefore investing in these businesses may involve 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 Envestors – will pay you back your investment.
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 or the London Stock Exchange. Even successful companies rarely list shares on such an exchange.