Risk of ECF-i

Investing in equity crowdfunding (ECF) can offer high potential returns, but like any investment, it also carries inherent risks. Understanding these risks is essential for making informed investment decisions.

Investing in Equity Crowdfunding carries a certain degree of risk. It's important to remember to invest only what you can afford to lose. Early-stage startups are particularly risky investments, as there is a chance that you may lose investors entire investment. However, this risk is matched by the potential for significant returns, as the valuation of growing companies can increase dramatically.

To manage investment risks, AMB Connect undertakes various measures such as conducting pre-screening, review by AMB Connect Panel of Industry Expert, rigorous due diligence and background checks on issuers before launching campaigns. AMB Connect also have our own screening process for companies seeking to be issuers, although this does not guarantee investment viability. AMB Connect strictly handles and directs investor funds to a registered trust account before disbursing them to the issuer, subject to Trustee satisfied that all disbursement conditions are met.

Risk Mitigation

AMB Connect strongly advise and will continuously promote to all investors to fully understand the issuer become committing to an investment. Investor need to realise they will need to understand the private company that are passionate about and understand their business well. When investing in Equity Crowdfunding, portfolio diversification by investing in different industries and companies can further mitigate risks. However, it is important to keep in mind that predicting returns in early-stage startups and private companies can be challenging. As an investor, it is essential to invest in something that investor find it valuable and promising. Investor should always invest as much as you can afford, but should never invest more than what you can afford to lose.

Last Update: 22 July 2024