If a business that you have invested in fails either the business or ourselves will contact you to notify you of this.
Investing in startups and early stage businesses involves risks including illiquidity, lack of dividends, loss of investment and dilution. Investors should therefore implement a diversification strategy when building an investment portfolio. Diversification involves spreading your money across multiple investments and, as an investor, will give you greater peace of mind that your investments will be sustained in adverse market conditions, and that losses will be cushioned. However, it will not lessen all types of risk.
What is dilution?
Dilution occurs where a company issues additional shares, and an existing investor does not purchase/receive more shares to maintain their holding.
For example, if two people own 50 shares each in a company (each holding 50% of the issued share capital), and the company issues/sells 50 new shares, their holding would be diluted down to 33.3%.