Investing in securities issued by unlisted companies involves specific risks:
- Risk of partial or total capital loss: The return on your investment depends on the success of the financed project. When investing in bonds, be aware that the risk-return profile is asymmetric. The higher the potential return, the higher the risk of the investment.
- Liquidity Risk: When you invest through BeeBonds, there may be limited opportunities to sell your securities. The securities you acquire through BeeBonds are often difficult to trade in a secondary market, where existing financial assets can be bought and sold. Consequently, you may not be able to sell your securities when you want to. However, BeeBonds bonds have an ISIN number and can be offered for sale on Expert Market.
- Tax Risk: Changes in tax laws may occur during the life of your investment. These changes can affect and potentially reduce the return on your investment.
- Inflation risk: The value of your capital and the interest you receive can be affected by inflation. In fact, the real value of your invested capital and the interest you receive may decline over time, reducing the return on your investment.
- Risk of changes in the economic climate: Investment through crowdfunding can be sensitive to the economy’s fluctuation. In times of recession, the risk of corporate default increases.
It is important to note that the above risks are not exhaustive and are provided for informational purposes only.
The projects available on BeeBonds have undergone rigorous analysis by our experts. Nevertheless, all information provided by BeeBonds on a project is the responsibility of the project owner, including the publicity around it, the Key Information Note and the Descriptive Note. The sole purpose of this information is to inform potential investors in so they can form their own opinions about the project proposed for financing.
BeeBonds recommends diversifying your investment portfolio and investing only amounts you don't need in the short term.