Don’t invest unless you’re prepared to lose all the money you invest. This is a high - risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more

Risk Warning

Don’t invest unless you’re prepared to lose all the money you invest. This is a high - risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more

Read our full Risk Warning

Risk Information

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
    • Most investments are shares in start-up businesses or bonds issued by them. Investors in these shares or bonds often lose 100% of the money they invested, as most start-up businesses fail.
    • Some of these investments can be held in an Innovative Finance ISA (IFISA). An IFISA does not reduce the risk of the investment or protect you from losses, so you can still lose all your money. It only means that any potential returns will be tax free.
    • Checks on the businesses you are investing in, such as how well they are expected to perform, may not have been carried out by the platform you are investing through. You should do your own research before investing.
  2. You won’t get your money back quickly
    • Even if the business you invest in is successful, it is unlikely that you will be repaid before the end of the specified term.
    • If the business you invest in does not meet its targets, it may not be able to pay you on the scheduled dates. You may find that you do not have access to your funds until later than expected.
    • Some platforms may give you the opportunity to sell your investment early through a ‘secondary market’ or ‘bulletin board’, but there is no guarantee you will find a buyer at the price you are willing to sell.
  3. 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.
  4. The value of your investment can be reduced
    • If your investment is in ordinary shares (as opposed to community shares), 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, which could further reduce your chances of getting a return on your investment.
    • Under certain circumstances, the directors of a community benefit society have the power to write down the value of community shares.
  5. You are unlikely to be protected if something goes wrong
    • The platform arranging this investment is not regulated by the FCA . Protection from the Financial Services Compensation Scheme (FSCS) only considers claims against failed regulated firms. Learn more about FSCS protection here.
    • The Financial Ombudsman Service (FOS) will not be able to consider complaints related to this firm.
If you are interested in learning more about how to protect yourself, visit the FCA’s website here.

For further information about investment-based crowdfunding, visit the FCA’s website here.

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This website is controlled by Ethex Investment Club Ltd, a company registered in England (company number 07432030) with registered office at The Old Music Hall, 106-108 Cowley Road, Oxford, OX4 1JE (hereinafter referred to as "Ethex", "we", "us" or "our"). The use of this website is subject to the following terms of use.

Please read the undernoted terms of use carefully before you use this website. By using any part of this website you will be held to have accepted that you will be bound by these terms. We may change these terms at any time by posting new or amended terms on this website. Your continued use of this website after any changes are posted means that you are held to have accepted that you are bound by the new or amended terms. Please therefore check our terms of use regularly.

1. Investor Disclaimers

1.1 Investments offered on the Ethex website are not readily realisable, which means that they may be difficult to sell and you may get back less than you originally invested. Investments are not covered by the Financial Services Compensation Scheme (FSCS) and returns are not guaranteed. If you are in any doubt, you should contact an Independent Financial Adviser.

1.2 Any business plans and financial projections posted on this website are posted only for the personal use of registered investors. Such documents do not purport to contain all the information that a prospective investor may require. All such information is confidential and by gaining access to such information you agree to keep it confidential at all times.

1.3 By using this website you acknowledge that a decision to invest is your decision and that no responsibility for the consequences of that decision is accepted by Ethex or by any of its directors, employees, consultants or other investors.

1.4 By investing through this website you acknowledge that you have read and understood these Website Terms of Use, the Investor Terms and Conditions, the Privacy Policy and the Risk Warning Notice.

2. General Website Terms & Disclaimers

2.1 Content on this website is provided for information only without any warranty, express or implied, that the content is accurate, current or complete, fit for a particular purpose or free from any computer viruses or defects. We will not be liable for any loss or damage caused by a virus or denial of service that may infect your computer hardware or programs, data or other proprietary material due to your use of this website and/or your downloading of any material posted on it (whether belonging to Ethex or not).

2.2 Commentary by Ethex and other material posted on this website is not intended to amount to advice by Ethex or by any of its directors, agents, employees or other investors. We are not liable or responsible for any reliance placed on such materials by you or anyone who you may inform of any of its contents.

2.3 Ethex will not be liable for any damages of any kind resulting from the use of or inability to use this website or its content. No guarantee is given that this website will always be available 24/7.

2.4 This website may contain links to other websites. We do not approve, endorse or accept liability for the content of any third party websites which may be accessed via, or are linked to, this website. The existence of a link to another website is not an authorisation by Ethex to you to access content or material from that other website.

3. Copyright

All rights, including copyright and database rights, in this website belong to or are licensed to Ethex in the United Kingdom. International copyright, database right laws and treaties protect this website and all content on this website. © Copyright 2021 Ethex Investment Club Ltd. All rights reserved.

You may not copy any part of this website, or carry out any other act which is protected by copyright or extract or re-utilise the whole or any substantive part (evaluated quantitatively and/or qualitatively) of the content of this website other than: -

  • Printing in hard copy form portions of the content of this website for personal use.
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  • Storing pages from this site in a cache or other temporary retrieval system for the sole purpose of personal viewing off-line.

These consents do not permit you to modify any of this website’s content or to use it in any commercial material without our prior written consent.

4. Linking To Our Website

You may, subject to the following conditions, provide a link to the home page of this website:

  • The right to link to this website is revocable by us and we reserve the right to prohibit any link and to employ measures, including technical measures, to remove any link.
  • Any link to this website must not be misleading or give the impression that we are associated with you or have approved or endorsed any website or equivalent entity from which such link is made; Any such link must indicate www.ethex.org.uk  as the destination of the link and must not use any Ethex logo or other proprietary graphic or trade mark without our prior written consent.
  • You may not use framing or deep linking to this website without our prior written consent.

5. Use And Indemnity

Ethex expressly prohibits the use of this website by you for any purpose which may be unlawful. You agree to indemnify us against any claim, loss, liability, damages or expenses on a full and unqualified indemnity basis arising out of any misuse by you of any part of this website or any information embodied in it.

6. Waiver And Enforcement

Failure by us to take action in respect of a breach by you of these terms of use shall not prevent us from taking future action in respect of the same breach or any other breach by you of these terms, unless we agree to the contrary in writing. If any of these terms is held to be unenforceable it will not affect the validity and enforceability of the remaining terms

7. Governing Law

These terms of use are governed by and construed in accordance with the laws of England and Wales. Any dispute arising under or in connection with these terms of use will be subject to the exclusive jurisdiction of the courts of England and Wales.

 

Ethex is proud to be an Ethical Consumer best buy

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Investments offered on the Ethex platform are not readily realisable, which means that they may be difficult to sell and you may get back less than you originally invested. Investments are not covered by the Financial Services Compensation Scheme (FSCS) and returns are not guaranteed. If you are in any doubt, you should contact an Independent Financial Adviser.

Risk Warning

Investments offered on the Ethex platform are not readily realisable, which means that they may be difficult to sell and you may get back less than you originally invested. Investments are not covered by the Financial Services Compensation Scheme (FSCS) and returns are not guaranteed. If you are in any doubt, you should contact an Independent Financial Adviser.

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