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What happens if an investment doesn't reach the target?
What happens if an investment doesn't reach the target?

A brief explanation of what happens to your money if an investment doesn't raise the money it needs to go ahead

Updated over a week ago

All of our investments have a minimum target amount they need to raise (this is sometimes the same as the maximum target) in order for the investment to go ahead. 

While most issuing companies or councils have the option to extend the close date on the raise up to a fixed date (specified in the terms of the investment) to allow for additional time to raise the funds if required, it is possible that they may still not reach their target.

The money raised for an investment is not transferred over to the issuing company or council until all three of the following criteria have been met:

  1. The minimum target raise amount has been met.

  2. The 14 day refund period has elapsed for all investors' whose investment is being transferred.

  3. The issuing company or council has satisfied certain conditions required for the project to go ahead (where relevant these are included in the terms of the investment).

In the event that an investment doesn't reach the minimum target before the final close date, or the issuer is unable to satisfy the conditions necessary for the transfer of funds, Abundance will return the money in full to all investors' Abundance accounts. This money can then be invested into a different investment, or withdrawn back to your bank account.

Please note that no interest will be paid on investors' funds where the project does not go ahead.

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