Risk Warnings
General information on the features of the investments offered and the associated risks

The respective contractual conditions are decisive for the respective investment, in particular the rights and obligations associated with it.

The investments offered on this Internet service platform (the "Platform") are, due to their features, not so-called gilt-edged investments, but rather entrepreneurial participations that are not suitable for securing retirement provision. In particular due to the qualified subordination and the pre-insolvency enforcement block, interest and redemption payments are not guaranteed either in terms of timing or amount. Investors must therefore be in a position to financially cope with a total loss of the invested capital in the event of an unexpectedly negative economic development. An investment on the platform is therefore not recommended for investors who are not able to part with the investment at any time at short notice and with financial losses.

With regard to the features of the investments offered on the platform, reference is made to the respective contractual conditions and other offer documents. These will be made available to investors in text form prior to conclusion of the contract and also in paper form on request.

RISK NOTES

Although the investments offered on the platform are not company law investments, they are nevertheless entrepreneurial investments that involve considerable risks. Consequently, a total loss, i.e. the complete loss of the capital invested, is possible. An investment in the investments offered on the platform should therefore only be made if

  • it is suitable and appropriate for the investor;

  • it only occurs as an addition to an investment portfolio or as part of a (risk-diversified) investment strategy;

  • the investor is not dependent on the capital invested and can financially cope with the total loss;

  • the investor is not dependent on being able to withdraw from the investment in the short term - without financial loss - (e.g. by selling or terminating the investment);

  • the investor (i) is not dependent on or expects regular distributions and (ii) is aware that the investments offered are not investments for which repayment or a return is guaranteed;

  • the investor does not leverage an investment in the asset (e.g. by taking out a loan)

In the following, the main risks associated with the investments offered on the platform and their issuers are described in a standardised form. The presentation is not exhaustive. Rather, there may be further risks in individual cases which depend on the circumstances of the individual case or which are currently unknown and have therefore not yet been considered in the following statements.

The occurrence of one of the risks listed below - either individually or together with the occurrence of other risks - can have a material adverse effect on the net assets, financial position and results of operations of an issuer and result in an issuer's ability to meet its (financial) obligations to investors, in particular its ability to satisfy payment claims by investors, being impaired or excluded. In this case, it is possible that interest and/or redemption payments may not be made and/or the repayability of the capital invested in the respective asset investment may be jeopardized or excluded. The value of an investment may therefore be impaired and a total loss of the capital invested may be possible.

The selected sequence of the risk factors listed below does not provide any indication of the probability of occurrence, nor of the severity or significance of the individual risks.

Maximum Risk

Although participation in losses is excluded and there is no obligation to make additional contributions, a complete loss of the capital invested in the investments is possible (total loss risk). In addition, depending on the individual circumstances of the individual case, investors may suffer further financial disadvantages in connection with an investment offered on the platform, e.g. payment obligations in the event of external financing of the investment. These financial losses and further financial disadvantages can lead to the private insolvency of an investor (maximum risk).

Default Risk (Issuer Risk)

The respective issuer could become insolvent or fall into overindebtedness. This could be the case, for example, if lower income and/or higher expenses than expected are recorded or if an otherwise existing capital or liquidity requirement cannot be covered. Insolvency has material adverse effects on the net assets, financial position and results of operations and thus on the ability of an issuer to meet its payment obligations to investors.

Financing Risk

There is a risk that the funds from the issue of the investments offered on the platform will not be sufficient to cover - in part or in full - any existing or future capital or liquidity requirements of the issuer. Consequently, an issuer may be dependent on further financing from other sources. If such funds are not available, not available in a timely manner or not available on acceptable terms, this may have adverse effects on the business operations, business prospects and development as well as the net assets, financial position and results of operations of an issuer. In particular, this may result in the need to restrict or discontinue business operations. In addition, an uncovered capital or liquidity requirement can lead to the occurrence of a reason for filing for insolvency.

Business Risk

The economic success of an investment depends largely on the economic success of the respective issuer. This in turn depends on numerous factors, some of which cannot be influenced. This applies in particular to cyclical fluctuations in the economic environment, the development of the markets in which an issuer operates and the competitive environment. In addition, adverse changes in the economic, legal or tax environment may occur.

Such risk factors may have an adverse effect on the business activities and prospects as well as the net assets, financial position and results of operations of an issuer.

It cannot be ruled out that the circumstances or developments forecast in the financial plan or in the other offer documents will not occur or will occur later than planned and that the actual course of business will deviate considerably from the expected course of business to the detriment of the issuer.

The occurrence of any of the aforementioned risks may lead to an unforeseen capital or liquidity requirement, and may also have other material adverse effects on the net assets, financial position and results of operations of an issuer.

Special Risks in the Case of Start-Ups and/or Innovative or Disruptive Business Models

Insofar as the issuer is a start-up, a company with innovative or disruptive business models, products or services or a company from a dynamic economic sector, there are generally special risks. Often the business model or the product or service is not yet established on the market. In principle, therefore, the earlier an investment is made, e.g. in the start-up, set-up or (product) development phase, the higher the associated risk.

There is a risk that the business idea or business model cannot be implemented. There is also the risk that the market will not accept the products or services offered or that the respective company will not be able to establish itself on the market for other reasons. It cannot be ruled out that economic success may not be achieved in the long term; this would jeopardise the value of the respective asset.

The occurrence of any of the aforementioned risks may lead to an unforeseen capital or liquidity requirement, and may also have other material adverse effects on the net assets, financial position and results of operations of an issuer.

Key Person Risk

It is possible that an issuer is or will be dependent on certain key persons. If these key persons are not or no longer available, this may have an adverse effect on the economic success and the net assets, financial position and results of operations.

Inflation Risk (Rurchasing Rower Risk)

There is a risk that an investor may suffer a financial loss due to monetary depreciation. Both the real value of the existing assets and the real income that is to be generated with the assets are subject to this risk. If the real interest rate is negative, taking into account the income generated with an investment and the inflation rate, this would mean a financial loss for an investor.

Information Risk

As a rule, no sales prospectus approved by the Federal Financial Supervisory Authority (BaFin) is published for the offer of investments due to statutory exceptions. Investors therefore generally do not have access to a comprehensive source of information. In this respect, there is a risk that an investor may not have access to all the information that is essential for an investment decision.

The information and documents provided on the platform are for general information purposes only and are not a substitute for investor and product-related advice. The information and documents provided are neither an analysis nor an investment or investment strategy recommendation with regard to the respective investment.

Insofar as reference is made in an offer to income generated in the past, this is not an indicator of future income. Actual earnings may be significantly lower.

The economic development of the investments offered depends on a variety of factors, some of which cannot be influenced or anticipated. There is a risk that any assumptions and estimates on which, in particular, the information on the forecast economic development is based may subsequently prove to be incorrect.

Missing, incomplete or incorrect information (including outdated or misinterpreted information) may lead to incorrect decisions by the investor.

In all the above-mentioned cases, there is a risk that the value of the investment and the associated opportunities and risks may be incorrectly assessed by an investor.

Risks in Case of External Financing of the Investment in an Asset

In the case of external financing of the investment in an asset, there are special risks, especially because of the repayment and interest obligations associated with external financing. Otherwise, the payment claims of investors from the investments offered on the platform are subject to a qualified subordination with a pre-insolvency enforcement block. If, as a result, payments from the investments cannot be made, cannot be made in full, or cannot be made when due, there is a risk of considerable financial losses that could lead to the investor's personal insolvency due to the regular payments to be made by the investor to the lender.

Risk of Conflicts of Interest

There is a risk that conflicts of interest may arise and have a material adverse effect on an investor's investment decision, the financial position and performance of an issuer or the value of an investment.

Risks in Connection with the Investment Object

Insofar as the concrete use of funds by the issuer, i.e. the investment object, is not yet certain at the time of acquisition of the investment, the investment has a blind pool character. In this respect, there is a risk that investors may not be able to assess the risks associated with the investment and the risk/reward ratio, or may not be able to assess them correctly due to a lack of knowledge of the specific investment object. Investors also have no influence on the selection of the investment object due to a lack of participation or voting rights. In this respect, they are exposed to the risk of the issuer making wrong business decisions; such wrong decisions can have a negative impact on the issuer's net assets, financial position and results of operations.

Reduction of the Issue Proceeds, Cost Burden

The issuers may incur costs and expenses in connection with the preparation and execution of the issue of investments (e.g. legal advice costs, remuneration of Innovestment GmbH). The capital raised is therefore not available in full for financing and investment purposes. In addition, the current earnings and liquidity of an issuer are burdened by non-performance-related costs (e.g. the service fee payable to Innovestment GmbH).

The aforementioned circumstances may have an adverse effect on the net assets, financial position and results of operations of an issuer and the value of an investment.

No Rights of Instruction or Co-Determination

The investments offered on the platform do not grant any rights of instruction or participation vis-à-vis the respective issuer or its management. Investors therefore have no opportunity to influence business policy and strategic decisions, management measures or the business activities of an issuer. In this respect, investors cannot prevent decisions or actions that have a negative impact on the value of the investment.

Risks in Connection with the Contractual Term of an Investment and the Lack of Tradability and Liquidity

In the case of a limited term or minimum term of an offered investment as well as limited transferability and lack of tradability, the capital invested by the investor is usually tied up in the medium to long term. Investors should bear in mind that they may not be able to dispose of the invested capital or the equivalent value of an investment before the end of the contract term. In addition, a legal disposal of the investments (e.g. sale) is usually contractually restricted and only permitted with the consent of an issuer. This means that investors cannot freely dispose of an investment. In addition, there is currently neither a trading centre nor a liquid secondary market for the investments offered on the platform and thus no possibility for the investor to sell the investments at any time at fair market prices. Rather, there is a risk that there is no identifiable market price and that the investments cannot be resold at any time. It cannot be ruled out that the sale of an investment may not be possible or may only be possible with financial losses. An investor suffers a loss if he or she sells an investment for an amount that is less than the amount invested in the acquisition.

Risks in Connection with a Qualified Subordination and a Pre-Insolvency Enforcement Block

The investments offered on the platform usually provide for a qualified subordination with a pre-insolvency enforcement block. In this case, the assertion of an investor's claims (e.g. interest and repayment claims) is contractually excluded as long as and to the extent that a reason for opening insolvency proceedings within the meaning of § 16 of the Insolvency Code, i.e. solvency, imminent illiquidity or over-indebtedness within the meaning of the Insolvency Code, exists for the respective issuer or the assertion of the subordinate claims would result in a reason for opening insolvency proceedings for the issuer's assets. In the event of insolvency proceedings against the assets of the issuer as well as in the event of its liquidation, the claims of the investor will only be served subordinately, i.e. after satisfaction of all non-subordinated creditors. The depth of ranking depends on the contractual agreement. Investors are thus exposed to the risk of over-indebtedness or (threatened) insolvency of the issuer. The permanent existence of the conditions for a qualified subordination and the pre-insolvency enforcement block, as well as the insolvency of an issuer, can thus lead to the complete loss of the invested capital and undistributed profit shares (see risk of total loss).

No Deposit Insurance

There is no guarantee fund or other compensation scheme for the investments offered on the platform, nor is there any deposit insurance provided by a deposit protection or guarantee fund or a comparable institution. In this respect, there is no deposit guarantee system that would grant investors claims for compensation and protect them from a total loss risk.

Regulatory Risks

There is a risk that the activities of an issuer, including the issue of investments, may be or become subject to authorisation. In this case, the Federal Financial Supervisory Authority (BaFin) can take measures and in particular order the reversal of the transactions. An obligation to obtain a permit or the legal consequences of violations of an obligation to obtain a permit would have material adverse effects on the assets and liabilities, financial position and results of operations of an issuer.

Risks Specific to Individual Cases

Depending on the respective investment and the respective issuer, further risks may exist in individual cases, which may have a significant negative impact on the value of an investment as well as on the assets, liabilities, financial position and profit or loss of the respective issuer and may impair its ability to make payments. With regard to such and other risks, reference is made to the respective offer documents. Investors should read the risks and further information contained therein carefully and take them into account when making their investment decision.

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