Risk Factors
New Venturetec invests in areas offering the opportunity of significant capital gains, but involves a high degree of business and financial risk. These risks include:

Management execution
The success of the company and its business strategy is dependent in large parts on the ability of the company to attract and retain key management.

Technological Factors
To establish and maintain a competitive position in its field, a company must be among the leaders in the industry in terms of discovering and developing technology that will enable it to develop more effective and less expensive products than those of its competitors.

Lack of Liquidity
The company's limited operating history and lack of revenue are factors which could make additional equity financing transactions, including an initial public offering, difficult to complete.

Need for follow-up investments
If the company is successful in achieving market acceptance, it will be required to expand its operations. As the company expands its operations, the strain upon the company's management, operating and financial systems and resources increases.

Product Market
The company's success is dependent upon acceptance of the company's product in the
marketplace.

Competition
Rapid technological change or development by others may result in a company's product becoming non-competitive or obsolete. There can be no assurance that the company will have the financial resources, technical expertise or the marketing, distribution or support capabilities to compete successfully.

Reliance on the Investment Manager
The Investment Manager exercises a significant influence over the direction of the company's business and affairs.