Risk factors.
An investment in this bond involves substantial risks and is suitable only for investors who can bear a total loss of their investment. The following is a summary; the full risk factors are set out in the prospectus.
You may lose your entire invested capital. This bond is a high-risk, subordinated and illiquid investment.
- 01
Risk of total loss
The bond is unsecured. If the issuer becomes insolvent or the underlying investments fail, you may lose part or all of your invested capital, including accrued interest.
- 02
Subordination
Claims under the bond are subordinated. In insolvency they rank behind all non-subordinated creditors and are served only after those claims are settled in full - often meaning no recovery.
- 03
No secondary market / illiquidity
The bond is not listed and there is no secondary market. You may be unable to sell before maturity and should be prepared to hold the bond for its full term.
- 04
Issuer risk
Repayment depends entirely on the issuer’s ability to pay. The issuer’s capacity to service interest and repay principal depends on the performance of the Seed Investment Pool IIC and its other assets.
- 05
Early-stage portfolio risk
Proceeds fund seed-stage ventures, which have a high failure rate. Returns are uncertain, may be delayed, and individual investments may be written down to zero.
- 06
No capital or interest guarantee
Neither repayment of principal nor payment of interest is guaranteed or secured by collateral, and no third party has assumed any guarantee.
- 07
Concentration and dependency
The issuer depends on key individuals and on its ability to source and manage investments. Adverse developments in the venture market may materially affect the issuer.
- 08
Tax and regulatory changes
Changes in tax treatment, law or regulation may adversely affect the bond, its yield after tax, or the issuer’s business.
This summary is not exhaustive. Please read the full “Risk Factors” section of the prospectus before subscribing.