Trickle 1A

1. Risk associated with the size of the team 
Risk: Given the stage of development that the company is in, it is essential to have the right team for the future development of the company. If the company relies entirely on an indispensable person, there is a risk that this person will withdraw from the company.
Consequence: If there is only one manager or key person and that person withdraws, the company is (temporarily) without management. In case of difficulties, no one would be able to represent the company to make decisions. 
Note: The company is accompanied by both imec.istart Fund and start it @KBC. 

2. Risk associated with the need for new financing 
Risk: Given the stage of development that project owner is in, it is likely that there will be a need for new financing.
Consequence: On the one hand, there is the risk that the company will not find investors, which would lead to the dissolution or bankruptcy of the company, causing the investor to lose part or all of his investment. On the other hand, there is the possibility that the company will find new investors, which will lead to dilution, which will be even greater if there is a lower valuation than the one currently used.
Note: Investors will have the opportunity to re-invest in new rounds, at the then current investment conditions. 

1. Risk associated with the competition 
Risk: Microsoft, Google or another company may develop a service similar to TRICKLE in one or more ways.
Consequence: There are few consequences if Microsoft or Google develop this service. Initially, there will be customer loss, but because TRICKLE connects to both providers' service (something they do not normally fully support), TRICKLE will always be one step ahead. The consequences if another company starts developing similar services could be more serious. This could lead to a lower valuation in case of a possible exit because the business plan could not be executed as planned. In that case, there could be lower or even non-existent returns. In the worst case, there could even be a liquidation and bankruptcy of INNOVATION VENTURES, with partial or full loss of the invested capital. Note: For Google & Microsoft, TRICKLE would focus its commercial efforts on its differentiators that support users across all calendar and mail platforms. For other competitors: because the intelligence behind TRICKLE's decision-making system is not trivial to build, they would probably outperform competitors' system and because TRICKLE is a flexible start-up, they can incorporate any feature enhancements that competitors add fairly quickly. Even in case other companies manage to copy the features, the market is big enough to support multiple competitors in this space. 

2. Risk associated with artificial intelligence 
Risk: OpenAI (or similar) is going to publish services that allow competitors to mimic TRICKLE's functionality.
Consequence: It would allow more (quasi-)competitors into the market. This could lead to the same consequence as the risk associated with competition.
Note: TRICKLE has already seen this with newer versions of ChatGPT. This introduces new technologies (which TRICKLE can also take advantage of), but most (if not all) implementations of these new features that TRICKLE has identified are just wrappers around OpenAI's services with little added value. While it is true that TRICKLE uses OpenAI's service to a small extent, it also has its own models (‘agents’) that are non- generalised (unlike OpenAI's models) and trained specifically for TRICKLE's purposes. These models are not easily available, copied or replicated. 

3. Risk associated to the number of users
Risk: TRICKLE needs a large group of users to be commercially viable.
 Consequence: A consequence could be that TRICKLE runs out of runway if a critical mass of users is not maintained. This could lead to a lower valuation in the event of a possible exit because the business plan could not be executed as planned. In that case, there could be lower or even non-existent returns. In the worst case, there could even be a liquidation and bankruptcy of INNOVATION VENTURES, with partial or full loss of the invested capital.
 Note: TRICKLE already has a commercial letter of intent with one of the world's largest consulting firms where TRICKLE would be used as an in-house assistant. It is in commercial talks with a Belgian Private Bank and three of the four ‘Big Four’ consulting firms in the world. It also has a large following and more than 500 initial users of the MVP that did not reach the market. In addition, TRICKLE has hired specific marketing and sales expertise to ensure they can bring in new customers through the freemium model, which they will then convert to paying customers in their various automated sales pipelines.

Type 3 - Risk of insolvency and bankruptcy of the project owner

Risk: The risk of insolvency means that the company does not have sufficient funds to meet its payment deadlines (cessation of payments). Consequence: If the company does not find alternative financing (shocked credit), it may go bankrupt. The insolvency or bankruptcy of INNOVATION VENTURES may lead to lower or non-existent returns and in the worst case to a partial or total loss of the invested capital. 

1. Risk associated with the lack of guarantees. 
Risk: Neither the shares of INNOVATION VENTURES nor the Participatory Notes of the TRICKLE 1A compartment of Spreds Finance provide guarantees of a return or repayment of the invested capital. 

2. Risk associated with the lack of a fixed return. 
Risk: Participatory Notes do not offer a fixed return. The return of the Participatory Notes depends solely on the performance of the Underlying Asset, namely the shares of INNOVATION VENTURES.
Consequence for both risks: If the project owner's predictions do not come true (within the predetermined timing), there is a risk of lower or non- existent returns and, in the worst case, partial or complete loss of the invested capital. 
Note for both risks: Investors in Participatory Notes bear the same economic risk as if they were investing directly as shareholders of INNOVATION VENTURES. 

Type 5 - Risk of failure of the financing vehicle

Risk: Although each Spreds Finance compartment is ‘bankruptcy remote’ (meaning that no other creditor can claim a right on or against this compartment) in relation to the others and in relation to the ‘general’ liabilities of Spreds Finance itself, as a result of (i) the terms and conditions of the Notes, (ii) the articles of association of Spreds Finance and (iii) Article 4 of the Law of 18 December 2016 on crowdfunding; there is a subsidiary risk of insolvency of Spreds Finance.
Consequence: Should such insolvency occur, Noteholders may be exposed to the risk of a significant delay in the recovery of their investment. Note: The probability of this risk occurring is extremely low given the structure and organization of Spreds Finance, in particular the compartmentalization mechanism and the "bankruptcy-remoteness" described above. Each participation taken or loan granted to a project owner is recorded in a separate compartment and is appropriately accounted for in the accounts, taking into account the fact that the accounts are kept by compartment. As a result of (i) the conditions attached to the issue of Participatory Notes, (ii) the articles of association of Spreds Finance and (iii) article 10 of the law regulating the recognition and delimitation of crowdfunding and containing various provisions relating to finance and notwithstanding articles 7 and 8 of the Mortgage Law of 16 December 1851, the assets of a particular compartment serve exclusively to guarantee the rights of investors with respect to this compartment. 

1. Risk associated with the absence of an organized exchange market for Participatory Notes 
Risk: Neither the project owner nor Spreds Finance organizes an exchange market for Participatory Notes. It is thus up to the investor himself to find a buyer for his Participating Notes. Given the absence of an exchange market for Participatory Notes, there is no way to adequately establish a comparative pricing methodology for Participatory Notes.
Consequence: A holder of Participatory Notes may not be able to find a buyer for the Participatory Notes it wishes to sell (at the price at which it wishes to sell). 
Note: The intention is not to sell the Participatory Notes but to sell the Underlying Asset, often on the occasion of the sale of the Company itself. 

2. Risk associated with the vote by the general meeting of holders of Participatory Notes to sell 
Risk: Any decision by Spreds Finance to sell shares of INNOVATION VENTURES is subject to the approval of the holders of Participatory Notes representing at least 75% of the outstanding Participatory Notes, unless Spreds Finance is required to sell them under a contractual or statutory provision.
Consequence: Investors thus bear the risk that the general meeting of the holders of Participatory Notes may refuse to approve the sale of the participation, in which case all investors are bound by this decision and thus must wait to obtain redemption of the Participatory Notes. 

3. Risk associated with an investment in a young company 
Risk: Investing in shares of young companies entails the risk that a buyer for the shares will not be found, or not at a fair price yielding a market return, or that a buyer will not be found within a reasonable period of time.
Consequence: If no buyer is found for the holding, redemption of the Participatory Notes is not possible.
Note: Spreds Finance will make every effort within its powers to obtain the best possible price. 

1. Risk associated with the absence of analysis by Spreds Finance 
Risk: Spreds Finance has not conducted an analysis of the proposed project or of the financial situation of the Company.
Consequence: Any investor considering subscribing to Participatory Notes should make its own analysis of INNOVATION VENTURES's solvency, activity, financial situation and prospects.
Note: Any decision to invest in Participatory Notes should be based on a comprehensive analysis of the project and of this sheet of essential investment information. Spreds Finance's model does not provide for the presentation of analyzed projects to investors but allows investors to invest based on the information made available to them, after making their own analyses. 

2. Risk associated with the lack of (periodic) reporting 
Risk: There is no obligation for periodic reporting in unlisted companies (except for the cases provided by law, such as the annual general meeting of shareholders and an alarm bell procedure). While some entrepreneurs proactively communicate good and bad news (with a certain periodicity), others do not. As a (minority) shareholder, one cannot enforce reporting (other than in cases provided by law).
Consequence: If an entrepreneur does not do (periodic) reporting, there can be long periods during which investors have no insight into the (financial) state of the company. The lack of reporting does not in itself change the (financial) state of the company but can create a sense of unease among investors. If at some point a company has to file a procedure of judicial reorganization or bankruptcy, this can be a (big) surprise for the investor. 
Note: Investors in Participatory Notes bear the same risk as if they invested directly in INNOVATION VENTURES and became shareholders. However, Spreds, as a crowdfunding service provider, tries to encourage each project owner to report at least 2x per year.

To the best of the project owner's knowledge, there are no other material risks associated with its activities.