Investing in early stage technology companies carries a number of key risks which may negatively impact the performance of the Investee Companies overall. Such risks are commercial risks (failure to commercialise products), licensing risk, competition, loss of key customers, reputational risks, limited resources, regulatory risks, patent risk, intellectual property risk, product liability risk, failure to reach sufficient market acceptance, lack of operating history. Any product may fail to offer material commercial advantages over other products, third party risk, distribution, solvency risk or pricing risk.

Third parties may fail to provide the Investee Companies with sufficient quantities of product or fail to do so at acceptable quality levels or prices or fails to maintain or achieve satisfactory regulatory compliance. Small companies usually depend on the success of single products and formulas and therefore any revenue stream will be concentrated. Changes in economic and political conditions including, for example, interest rates, rates of inflation, industry conditions, tax laws and other factors can substantially and adversely affect equity investments in general and the Investee Companies’ prospects in particular. Intellectual property rights do not necessarily address all potential threats to the Investee Companies’ competitive advantage. Any new product, formula or technology carries very high risk of failure in the market.

The availability of any tax relief, including EIS and SEIS, depends on the individual circumstances of each investor and of the company concerned, is only available for UK Investors in qualifying companies and may be subject to change in the future. If you are in any doubt about the availability of any tax reliefs, or the tax treatment of your investment, you should obtain independent tax advice before proceeding with your investment.