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.
Insights
Company News
Craig Peterson
· 1 min read
· Updated on

GCV and Maven joins forces for a series of entrepreneur pitch events

Growth Capital Ventures and Maven Capital Partners have joined forces to launch a series of pitch events for local entrepreneurs.

Our first event is open for registration to North East businesses looking for support and funding to grow - join us on the 28th November at the Xcel Centre, Newton Aycliffe, for a roundtable pitch event.

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Helping local entrepreneurs grow

At the event, you’ll have 60 seconds to pitch your business to our local investment team alongside other like minded entrepreneurs looking for support to grow.

Growth Capital Ventures and Maven Capital Partners (one of the UK’s leading private equity houses and manager of the £20m Finance Durham Fund) are teaming up to support North East businesses seeking finance to grow.

Many years’ experience tells us that investment is a shared journey, where results are most successful when all parties have a common vision for driving the business forward and maximising value.

Our aim is to give local entrepreneurs a platform for the continued growth of your business, and equip you with the right knowledge and know how to take your next steps towards growth.

Join us for a morning of pitching, support and networking

We’ll be on hand to provide strategic and commercial expertise to better your business, refine your pitch and give you the necessary guidance to take the next steps in your exciting growth plans.

To register, simply click here.

Agenda

9.00 – 9.30 Registration and networking

9.30 – 9.45 Welcome from Maven and GCV to highlight the funding streams available to growing businesses and best practice when pitching

9.45 – 10.00 Each business is assigned to an investor and will take turns in pitching their business for 60 seconds

10.00 – 10.30 Each investor will facilitate a roundtable discussion to help businesses refine their pitches and recommend next steps for achieving their goals

10.30 – 11.00 Q&A, concluding comments and close

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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.