- Risk Summary -

Due to the potential for losses, we consider these investments to be a risk.

What are the key risks?

1. You might lose the money you invest

  • Most investments are shares in start-up businesses. Investors in these shares often lose 100% of the money they invested, as most start-up businesses fail. However, if any of the businesses you invested in scales through, you might end up making over 100% profit in few years.
  • Do your personal researches on the businesses you are investing in. Check how well they are doing. How you expect them to perform may not have been carried out by Zimalek. You should do your own research before investing.

What are the key risks?

2. You might not get your money back as soon as you expected

  • Even if the business you invest in is successful, it will likely take several years to get your money back.
  • The most likely way to get your money back is if the business is bought by another business or lists its shares on an exchange. These events are not common.
  • Start-up businesses rarely pay you back through dividends. You should not expect to get your money back this way.
  • You may have the opportunity to sell your investment early through Second investor’s market, 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

  • Do not Put all your money in one business or type of investment. Spreading your money across different investments makes you less dependent on any one to do well. Spread the investments and hopefully, you have different sources of income to reap from.

4. The value of your investment might get devalued

  • If your investment is in shares, the percentage of the shares you have in businesses 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.

5. You might not be protected if your investment clearly goes wrong

  • In a situation whereby a business goes down genuinely without any illegal act or dealings by the founders or manager, Zimalek might not be able to protect you as it is part of the risk in investments.