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Investing in Community Shares

Investing in community shares needs careful thought. Here are some factors to consider.

Your decision about how much to invest should not be taken lightly. What’s really important is that you do not invest money that would mean that your day-to-day living or any other financial commitment and plans were put at risk. You should have the money ‘tucked away’ and be prepared to not see it again, or need it to generate income for you, for a while. You need to take a long-term view. We are however confident that in the longer term, the venture will be well able to reward and repay investors.

Trying to gauge how many people we need to become members, and at what level of shareholding is all a bit Mystic Meg! But based on insights from other similar campaigns, it becomes very clear is that even a small number of people investing a little more has a huge difference on the total raised.

As with any investment, there are risks and it’s important that everybody’s eyes are wide open to that. However, there are mechanisms in place to protect your money. Firstly, we are using a tried and tested facility called Crowdfunder to run the actual share offer. As such, your money is returnable in full should the minimum fundraise not be reached.

Secondly, if the purchase goes ahead, you can be reassured that your money is going into enabling a viable business, run by sensible people. In an unlikely worst-case bankruptcy scenario, the legal constitution of the benefit society protects shareholders from any liability (£5) above their shareholding.

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