Risk warning

To help you understand the risks associated with investing in equities, we invite you to read the summary of risks below.

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Risk of capital loss

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The majority of start-ups fail or do not develop as expected and as a result, investing in such businesses can involve significant risk. You may lose all or part of your investment. You should only invest an amount that you are prepared to lose. If a company you invest in goes bankrupt, neither the company — nor Blast. — will refund your investment.

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Lack of liquidity

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Liquidity is the ease with which you can sell your shares after buying them. Shares in companies launched through Blast Club are not readily saleable and are unlikely to be listed on a secondary market, such as AIM, Plus, or the London Stock Exchange. Even successful companies rarely trade their shares on such a market.

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Dividend scarcity

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Dividends are payments made by a company to its shareholders from the company's profits. Most of the companies that raise money on the Blast site are start-ups or young companies, and these companies rarely pay dividends to their investors. This means that you are unlikely to see a return on your investment before you can sell your shares. Profits are generally reinvested in the business to fuel growth and create value for shareholders. Businesses have no obligation to pay dividends to shareholders.

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Dilution

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Any equity investments made through Blast. may be subject to dilution in the future. Dilution occurs when a company issues more shares. Dilution affects every existing shareholder who does not buy any of the new shares issued.

As a result, an existing shareholder's proportionate stake in the company is reduced, or “diluted” — which has an effect on a number of things, including voting, dividends, and value.

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The need for diversification of investments

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In order to limit risks as much as possible and to increase the chances of an overall return on your invested capital, we advise you to diversify your investments. Diversification is the process of spreading your money across different types of investments with different risks. Investors should only invest part of their available capital through Blast. and should balance it with safer and more liquid investments.