Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong.
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Risk Summary

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Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

  • You could lose all the money you invest
  • Most investments are shares in start-up businesses or bonds issued by them. Investors in these shares or bonds often lose 100% of the money they invested, as most start-up businesses fail.
  • Checks on the businesses you are investing in, such as how well they are expected to perform, may not have been carried out by the platform you are investing through. You should do your own research before investing.

You won't get your money back quickly

  • Even if the business you invest in is successful, it will likely take several years to get your money back.
  • 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.
  • Start-up businesses very rarely pay you back through dividends. You should not expect to get your money back this way.
  • Some platforms may give you the opportunity to sell your investment early through a 'secondary market' or 'bulletin board', but there is no guarantee you will find a buyer at the price you are willing to sell.

Don't put all your eggs in one basket

  • 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. A good rule of thumb is not to invest more than 10% of your money in high-risk investments. Learn more here.

The value of your investment can be reduced

  • If your investment is shares, 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.
  • 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.

You are unlikely to be protected if something goes wrong

  • 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.
  • Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated platform, FOS may be able to consider it. Learn more about FOS protection here.

If you are interested in learning more about how to protect yourself, visit the FCA's website here.

For further information about investment-based crowdfunding, visit the crowdfunding section of the FCA's website here.
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Craig Peterson
· 2 min read
· Updated on

Chilton: exclusive residential property investment opportunity

Residential property is an established asset class favoured by UK investors because it has historically provided strong returns through investments that are easy to understand.

Investors who have previously made regular property investments have generally been driven towards investing into buy-to-let properties. Although still favourable, the benefits of being a buy-to-let landlord have decreased in recent times due to changes in tax reliefs.

Fortunately for investors, the growth of fintech has led to alternative investment platforms to embrace property investments alongside growth SMEs, and away from traditional buy-to-let models.

Download our 'integrating property investments into your portfolio' guide

Making equity investments in property through Special Purpose Vehicles (SPVs) offers a range of investor groups the opportunity to invest alongside one another and take on the role of property developers.

As equity investments, the return on investment would come in the form of capital growth, an outcome that is traditionally considered a long-term objective. However, equity investments in property can offer the potential for elusive, rapid capital growth.

How profitable the SPV is will depend on a range of factors including, but not limited to, the ability to deliver the development and market demand for the properties being constructed.

Chilton: an exclusive residential property investment opportunity

With this in mind, I would like to introduce you to our next residential property investment opportunity; an opportunity to invest in the purchase of a single residential development site in Chilton, County Durham for residential development and sale of 14 units.

Carlton SPV 1 Chilton Limited ('SPV1'), a special purpose vehicle, will be set up to develop the 14 luxury family homes. GCV is seeking to raise £0.4 million of investment alongside the senior debt to finance the project.

Chilton property investment opportunity

This development investment opportunity will allow each investor to co-invest in this residential development scheme and share in the development profit.

The site is located in the North East of England within the desirable area of County Durham. The site will be acquired with the benefit of detailed planning consent and the project is targeting a base case 1.5x multiple of money return.

The full development site and investment opportunity information can be downloaded here.

The scheme will be built and developed by startegic delvery partner, Homes by Carlton, who specilaise in delivering high quality new build houses in the North East. The project is being made available to the GrowthFunders investor base, and is now live on the GrowthFunders online co-investment platform. This is represented on the platform alongside a £200,000 investment from corporate investor and fellow joint venture member of CoreHaus, Fusion21.

The models through which investment most appeal to investors are changing, and the versatility offered through property investments is considerable.

To get into property as an investor, there a whole host of considerations, and we've produced a guide to integrating property investments into your portfolio, which offers a great starting point. The guide (and associated property investing webinar) lead you through these in more detail, and feature worked examples to give you a number of real world scenarios.
Driving Growth.
Creating Value.
Delivering Impact.

Backed by

Growth Capital Ventures (GCV) is backed by funds managed by Maven Capital Partners, one of the UK’s leading private equity and alternative asset managers.