Page 71 - IM - Praetura Ventures 2019 EIS Fund

Risk Factors

Important: The attention of prospective Investors is Investment Risk Diversification and Dilution
drawn to each of the following risk factors. The Investee Companies will be small, unquoted companies When investing in a small fund this brings the potential
and such investments carry a high degree of risk with risk that the Fund may either become overexposed to
Investors should be aware of the high-risk and illiquid regards to both investment returns and liquidity. There is no one Investment as it provides follow-on investment, or
nature of EIS investments that will be contained in market, nor is there intended to be a market for the shares; that it is heavily diluted by not participating in follow-
the Fund portfolio. The below risk factors are not as such, an investment in the Fund may be illiquid. on financing, or indeed that the Investee Company is
intended to be exhaustive but are included to help unsupported and so is unable to continue trading, losing
you understand the risks of investing. Investors should You should not expect to receive dividend income from the Fund its entire cost of investment.
consider carefully whether an investment in the Fund these companies. It is not intended that any income or
is suitable for them in light of the information in this capital will be returned to Investors during the Three Investment Portfolio
document and their personal circumstances. If in any Year EIS Periods. After the initial holding period, it may The performance of the Fund is dependent on the ability
doubt whatsoever, an Investor should not subscribe. In still be difficult to realise the Shares or to obtain reliable of the Fund Manager to identify appropriate Investee
any case, it is strongly recommended that Investors seek information about their value as the market for shares Companies and on the ability of the Investee Companies
the advice of an FCA authorised and regulated advisor in smaller companies is less liquid than that for shares in to perform in line with their respective business plans and
and /or tax advisor or other appropriately qualified larger companies, bringing with it potential difficulties in other market factors outside of our control or the Investee
professional advisor. You should only invest money that acquiring, valuing and disposing of such shares. Companies’ control.
you can afford to leave for the medium to long term
and/or are prepared to lose. The value of investments held by the Fund may go down The performance of the Investee Companies may be
as well as up and Investors may not receive back all or adversely affected by global or local economic, political,
This document should not be considered as constituting any of the amount invested. Investment returns may vary regulatory or other factors beyond the control of those
legal, taxation or investment advice. Each party to substantially over time, and there can be no assurance that entities.
whom this document is made available must make Investors will achieve any particular rate of return.
its own independent assessment of the Fund after In addition to other analytical tools, the investment
making such investigations and taking such advice as portfolio team may use financial models to evaluate
may be deemed necessary. In particular, any estimates, investment opportunities. The accuracy and effectiveness
projections or opinions contained in this document of such models cannot be guaranteed. In all cases,
involve significant elements of subjective judgement, projections are only estimates of future results which
analysis and assumptions, and each recipient should are based upon assumptions made at the time that the
satisfy themselves in relation to such matters. projections are developed.

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