How to successfully pass the Sign-Up Quiz
In order to pass the test, there are a few things you should be aware of:
- The majority of startups and early stage businesses fail.
- In the event that a business fails, no one is liable to pay you back the amount you invested in the equity of a private business and your investment will be lost.
- If you invest in the equity of a private business and decide you would like your money back, it is unlikely that you will be able to sell your shares. Investing in startups is a long term process and you should be aware of this.
- Typically, startups and growth focused businesses do not pay dividends to their investors.
- While IFG invests in each deal it sources, it does not offer any regulated financial advice to investors.
- As the startup grows and issues additional shares, be prepared for your shares to be diluted and represent less of the business than when you first invested.
- Investing in a private equity business poses a high risk, because of this you should only invest a small proportion of your available capital in these companies.
- IFG.VC investments are not covered by the FSCS - The FSCS does not cover investments into private companies. You can find out about what the FSCS does cover here
