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.
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Lauren Miller
· 1 min read
· Updated on

Intelligence Fusion is now 34% funded!

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Intelligence Fusion have raised 34% of their £400,000 target with a current investment quantum of over £138,600.

This great achievement has been attained through true co-investment between Professional Investors, Retail Investors and an Institutional Investor, Finance Durham.

This round - the second for Intelligence Fusion, further to a proof of concept round completed in 2015 - will enable the team to build the second iteration of the platform, deepen and strengthen the tech, and expand to include a commercial sales team to promote the product into numerous industries and markets.

 

Intelligence Fusion is an in-depth and intricate product, with CEO Michael McCabe summarising it perfectly on the highest level - "we provide the information businesses need to understand in order to protect their people and assets in a highly complex world."

The current team at Intelligence Fusion have used their networks and contacts to sell their product into a variety of markets and businesses, in addition to obtaining notable private users of the service. One of these, a highly decorated general for an intergovernmental military alliance, offered the following feedback:

I just wanted to let you know I look for your Fusion updates every day! Your straight-forward presentation and solid analysis is most helpful; I am impressed by the product timeliness as well.

With 22 days to go, find out more about the Intelligence Fusion investment opportunity here.
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.