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

Estimated reading time: 2 min

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.
GCV
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Lauren Miller
· 2 min read
· Updated on

Cyber attacks - what do they mean for businesses?

Media coverage of the recent 'WannaCry' ransomware attacks - infecting more than 200,000 systems across 150 countries - has thrown IT security into sharp relief.  The attacks have surprised analysts in a variety of ways.

Firstly, their apparent simplicity - the attacks exploit a vulnerability in Microsoft Windows software that if up-to-date will already have been eliminated. 

Secondly, their modest financial demands - despite being termed ransomware, their total accumulation so far is estimated at $55,000, a fraction of what a sophisticated, financially motivated attack might hope to achieve.

The more damaging impact has been the disruption to public services, such as healthcare and transport.  Disruptions to programmes of acute care, such as radiotherapy and chemotherapy, are causing distress to families.  This reinforces the importance of investing in situational awareness to constantly monitor threats to operational security.

We spoke to Michael McCabe, CEO of Intelligence Fusion, about the effects of such attacks; effects that corporations need to consider in protecting their people and assets, both physical and digital:

WannaCry has been described by Europol as ‘unprecedented, requiring a complex international investigation to identify the culprits’. Law enforcement agencies and security services from around the world have been trying to work out who was responsible for an attack which wreaked havoc across the globe. Researcher’s initial indications appear to be pointing towards a hacking group called Lazarus, believed to operate under North Korean government control. If proven, this cyber-attack was conducted the same weekend as Kim Jong Un’s regime launched a new type of ballistic missile, which showed a level of performance never seen from a North Korean rocket. Both incidents risk escalating an already tense situation in Southeast Asia, which could lead to a pre-emptive strike by the United States, if it feels it is at risk of being targeted both by military and cyber means.

In a world which is already witnessing great economic, political and civil uncertainty, cyber criminality and warfare are just additional risks that businesses and organisations have to be aware of and prepare for. Business travellers to Europe are currently crying out for better information on the deteriorating security situation on the continent, to help protect their people and assets. Sadly, if conflict was to break out in North Korea following the WannaCry attack, this will lead to widespread instability in a region which is growing economically, but is already witnessing tensions over the South China Sea dispute. The key to business resilience in uncertain times is better intelligence, which is why Intelligence Fusion 2 is such an important project, as it will provide the information businesses require to operate safely in emerging and threat-rich environments across the globe.

Intelligence Fusion is an Intelligence and Risk Software-as-a-Service (SaaS) platform that provides situational awareness information globally within the security and risk management sector. The co-founders have deep sector knowledge and experience in both the public and private sectors, beginning their careers in the British Armed Forces and specialising in the protection of people and assets.

Currently raising their second round of growth capital, all of the investment details, including an explainer video around Intelligence Fusion's platform, can be found by clicking here. Please note your capital is at risk and the value of your investment can go down or up.
Driving Growth.
Creating Value.
Delivering Impact.

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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.