Risk Factors
Prospective investors should be aware that the value of the shares can fluctuate and that there is no certainty as to any level of dividends. In addition, there is no guarantee that the market price of shares in Venture Capital Trusts will reflect their underlying net asset value. Having regard to the company's investment policy and the tax reliefs available, shares in a VCT should be considered as a long term investment.
The past performance of VCTs is not a guide to the future performance. The value of an investment may go down as well as up, in which case an investor may not get back the amount invested.
Sale of Shares
Although the shares will be listed on the London Stock Exchange, there may not be a liquid market for the shares. Purchasers of existing shares from a shareholder will not qualify for income tax relief.
Relief from income tax (40%) on subscription shares in a VCT is withdrawn if the shares are disposed of within three years of issue.
Risks associated with unquoted and early stage start-up technology companies
Investee Companies will be in the early stages of their development and may include new companies. During the life of the investment, these investee companies may undergo significant structural change. Such businesses are usually exposed to greater risks than established businesses and carry an above average level of risk. It is generally the case that whilst investment in early stage and start-up unquoted companies can offer attractive returns, they involve a higher degree of risk than investment in quoted companies.
The Company's investments will be in companies whose securities are not publicly traded or freely marketable and may, therefore by difficult to realise.