This depends on what you choose to invest in on our platform. If you are investing in a company you can help support one you believe in, and own part of the company. With respect to returns on your investment, most companies raising capital through our platform are in a growth stage and are therefore most likely to reinvest any profits back into the business to keep growing. In this case the strategy and offer tabs in the offer page will provide you with details such as the company’s exit strategy and dividend policy so you can know what to expect.
Sometimes we offer access to various funds on our platform, in which case the details will be specific to each fund. You will be able to view details on these through the offer page and the various documents loaded to the page.
Investments in early stage companies are generally long term, and you should not invest money if you are likely to need that money in the near or medium term. The timing and nature of your return is typically uncertain.
Returns can be realised in 4 ways:
- Exit – a company may be acquired by a third party and distribute the proceeds to shareholders.
- Listing – a company may list on a stock exchange like NZX, providing a market for shareholders to sell their shares.
- Dividends - a company may choose to distribute profits to shareholders in the form of dividends.
- Private share sale – selling shares privately is generally lawful, however some companies may not facilitate it. There is no guarantee that you will be able to sell your shares when you want to, or at all.
Investors may also receive non-cash rewards or incentives for investing in a company - these will be specified in each company's offer.
We strongly recommend reading all information relating to the offer and asking questions if you have any before committing to an investment.
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