What are the risks of investing?

As with any investment, investing in crowdfunding investments through Triodos does involve risk. But what are some the key risks involved?

You could lose all the money you invest - If the business you are investing in fails, there is a high risk that you will lose your money. Most start-up and early-stage businesses fail.
You are unlikely to get your money back quickly - Even if the business you invest in is successful, it will likely take several years to get your money back.
Don’t put all your eggs in one basket - Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well.
The value of your investment can be reduced - If your investment is shares, the percentage of the business 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.
You are unlikely to be protected if something goes wrong - Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here.

You can find our more information about the key risks involved on the Triodos Crowdfunding risks page.

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Investments offered on this platform are not readily realisable, which means that they may be difficult to sell and you may not get back the full amount invested. Investments are not covered by the Financial Services Compensation Scheme (FSCS) and your capital is at risk and returns are not guaranteed. Repayment of capital and interest or payment of dividends will be dependent on the success of the organisation's business model and past performance isn’t a reliable indicator of future performance. You should always read the offer document in full before deciding whether or not to invest as it will cover risks specific to an individual investment. You can read more about the general risks associated with making these types of investments. If you are unsure if any of these investments are right for you, you should contact an Independent Financial Adviser.

Triodos Bank UK Ltd. Registered Office: Deanery Road, Bristol, BS1 5AS. Registered in England and Wales No. 11379025. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 817008.