Risk Warnings

Investing  into early-stage businesses and startups can ultimately be very  rewarding, but involves risks and challenges that must be properly  understood. If you choose to invest in businesses displayed on Kaiku,  previously AGORA, you should be aware of and accept these important  considerations:

1. Loss of Capital
The majority of early-stage businesses, and other growth-focussed  businesses and start-ups fail. If you invest into a business displayed  on the Kaiku platform, it is much more likely that any of your invested  capital will be more last than seeing any return of capital and/or  profit. You should not look to invest more money into these types of  companies, as displayed on the platform than you can afford to lose  without altering your standard of living.

2. Illiquidity
Almost all investments made into companies shown on the Kaiku platform  will be highly illiquid. It is therefore very unlikely that there will  be a liquid secondary market for the shares of the business. As such,  you should assume that you will not be able to sell your shares until  and unless the company floats on a stock exchange or is bought by  another company; and, even if the company is bought by another company  or floats, your investment may continue to be illiquid. A flotation on a  stock exchange or purchase is unlikely to occur for several years from  the time you make your investment. Investors using the Kaiku platform  should not assume that an early exit will be available just because a  secondary market exists.

3. Rarity of Dividends
Businesses of the type displayed on the platform rarely pay dividends.  This means that if you invest in a business through the platform, even  if it is successful you are unlikely to see any return of capital or  profit until you are able to sell your shares. Even for a successful  business, this is unlikely to occur for a number of years from the time  you make your investment.

4. Dilution
Any investment you make in a business displayed on the platform is  likely to be subject to dilution. This means that if the business raises  additional capital at a later date, it will issue new shares to the new  investors, and the percentage of the business that you own will  decline. These new shares may also have certain preferential rights to  dividends, sale proceeds and other matters, and the exercise of these  rights may work to your disadvantage. Your investment may also be  subject to dilution as a result of the grant of options (or similar  rights to acquire shares) to employees of, service providers to or  certain other contacts of, the business.

5. Diversification
If you choose to invest in businesses of the type displayed on the  platform, such investments should only be made as part of a  well-diversified portfolio. This means that you should invest only a  relatively small portion of your investable capital in such businesses,  and the majority of your investable capital should be invested in safer,  more liquid assets. It also means that you should spread your  investment between multiple businesses rather than investing a larger  amount in just a few.