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London, EC1R 5DG
020 3145 1851
enquiries@editioncapital.co.uk
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Call us on 020 3145 1851, or email enquiries@editioncapital.co.uk
Risk summary for non-readily realisable securities which are shares
\nEstimated reading time: 2 min
Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.
\nWhat are the key risks?
\n1. You could lose all the money you invest
\n• If the business you invest in fails, you are likely to lose 100% of the money you invested. Most start-up businesses fail.
\n2. You are unlikely to be protected if something goes wrong
\n• 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. https://www.fscs.org.uk/check/investment-protection-checker/
\n• Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection here. https://www.financial-ombudsman.org.uk/consumers
\n3. You won’t get your money back quickly
\n• Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.
\n• The most likely way to get your money back is if the business is bought by another business or lists its shares on an exchange such as the London Stock Exchange. These events are not common.
\n• If you are investing in a start-up business, you should not expect to get your money back through dividends. Start-up businesses rarely pay these.
\n4. Don’t put all your eggs in one basket
\n• 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.
\n• A good rule of thumb is not to invest more than 10% of your money in high-risk investments. https://www.fca.org.uk/investsmart/5-questions-ask-you-invest
\n5. The value of your investment can be reduced
\n• 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.
\n• These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment.
\nIf you are interested in learning more about how to protect yourself, visit the FCA’s website here. https://www.fca.org.uk/investsmart
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\nFounded by school friends Max and Nick, Hotpod Yoga delivers truly immersive hot yoga experiences in a patented state-of-the-art pod structure. But as invigorating (and let’s be honest, at times grueling) as our trial class was, we were struck in particular by the commercial insight demonstrated by the founders. In addition to impressive brand execution and market awareness, Max and Nick had seen very early on the opportunity to build a franchise network, and proceeded to strategically embed this from day one.
As well as accelerating brand reach, franchising offers a profit centre with a different risk (and opportunity) profile to owned-operations. Hotpod were able to take advantage of this by leveraging their patented, replicable pod structure and a customer market which was very quickly strengthening in both urban and regional areas.
Demand from an emerging group of entrepreneurial yoga enthusiasts who wanted to run their own businesses was the final piece of the jigsaw, and by the time we invested, fifteen franchises were operating, in compliment to a small group of owned studios. Fast forward to today, and more than sixty Hotpod Yoga franchises are trading globally, supported by an outstanding in-house franchise division. This impressive feat markedly distinguishes Hotpod from its UK competitors.
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",id:"4145",imageCaption:null,image:[{filename:"1.HOTPOD-Rectangle.jpg",url:"https://d7s91s1zzpua0.cloudfront.net/1.HOTPOD-Rectangle.jpg",title:"1 HOTPOD Rectangle"}],imageArgument:"left"},{itemTitle:"Edition",bodaycopy:"Over the past four years we have developed a close partnership with Max and Nick, helping to guide them through significant growth alongside retaining their resonance in an increasingly noisy – and lucrative - wellness market. We have also helped to shape what is now an HQ team of 25 and we are really proud of the people responsible for running Europe’s largest yoga business.