To invest through Thrive you need to understand the following important risks:
Losing all of your investment
Investment, whether in new or existing businesses, carries high risks as well as the possibility of high rewards. Accordingly each investor should consider very carefully whether such investments are suitable in the light of personal circumstances and commitments and the financial resources available to each Investor. Thrive does not promise any return on investment nor that the value of any investment will be maintained. Engaging in any investment activity may expose you to a significant risk of losing all of your investment.
Most of the investee companies which are listed on Thrive’s website are new companies with limited if any track record. These companies will provide information such as their business plan and financial forecasts. Please be warned that these documents are not guarantees that the relevant company can achieve what it is hoping to do. Equally the information provided may state certain facts and statements, and again please be warned that Thrive is not responsible for checking the accuracy of these facts and statements (which may not always prove to be true or complete).
If a company you invest in fails, neither the company – nor Thrive – will pay back your investment.
You are not covered by the Financial Services Compensation Scheme
This platform is for making investments. Investments are not covered by the Financial Services Compensation Scheme. Before it is invested or once the proceeds of investments are returned, your money will be held by the money recipient in a client account and subject to separate protections applicable to credit unions and banks.
No established market – lack of liquidity
As an investor you should be aware that no established market exists for the trading of shares in private companies (which the companies that are listed on the Thrive’s website are), and such shares are not easily realisable. It must be appreciated that there could be difficulty in selling such investments at a reasonable price and, in some circumstances, it may be difficult to sell them at any price.
Lack of dividends
The companies pitching on Thrive's website are early stage companies, and these companies will rarely pay dividends to their investors. This means that you are unlikely to see a return on your investment until you are able to sell your shares. Profits are generally re-invested into the company to fund growth. Companies have no obligation to pay shareholder dividends.
Possibility of dilution
All companies listed on Thrive’s website offer Ordinary Shares, which include pre-emption rights that protect an investor from dilution. Companies must give shareholders the opportunity to buy additional shares during a subsequent fundraising round so that they can maintain or preserve their shareholding. Dilution affects shareholders who do not buy any of the new shares being issued. As a result an existing shareholder's proportionate shareholding of the company is reduced, or ‘diluted’. This has an effect on a number of things, including voting, dividends and value of shareholdings.
The need for diversification
Diversification by spreading your money across multiple investments will reduce your overall risk of financial loss. We highly recommend investors do this to maintain a balanced portfolio. Investors should also consider avoiding putting their money in the same investment as immediate family members. Investors should only invest a proportion of their available investment funds via Thrive due to the high risks involved.
Thrive and ShareIn recommend that you take your own tax advice on any investments which you made via this website.
Neither Thrive nor ShareIn provide advice or make personal recommendations. If you are in any doubt about the action you should take or the contents of a particular offer document, you should seek advice from an independent financial advisor authorised under the Financial Services and Markets Act 2000.
Past performance is not a reliable indicator of future performance. You should not rely on any past performance as a guarantee of future investment performance.