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
Investment Campaigns
Lauren Miller
· 1 min read
· Updated on

Intelligence Fusion: the investment opportunity and achievements

If you're a member of our GCV Invest co-investment platform, you'll be aware of the Intelligence Fusion EIS-eligible investment opportunity. Currently 91% funded, the opportunity is set to end in the next few weeks, at a figure in excess of £400,000.

An exciting investment opportunity, Intelligence Fusion have achieved some fantastic traction in recent times, including:

  • Having over 68,000 incidents reported across multiple continents
  • Are the market leader in geopolitical intelligence, running an exclusive pilot scheme in which they have access to the data feed in order to further develop their internal platform around
  • A new contract is underway with a leading tracking company using a referral subscription model
  • Subscribed customers delivering annual recurring revenue
  • An immediate pipeline of leads who are being successfully nurtured into clients
  • Over 250 identified potential clients on their initial target list
  • Several key sectors identified for targeting further clients, which include banks, military and police organisations

In addition, Intelligence Fusion proudly:

  • Provide situational awareness for a security company protecting one of the largest movie franchises currently being filmed
  • Produced thematic papers for a government agency, which were highly regarded. So much so, they will produce another thematic report for the same agency this year as the relationship develops further
  • Are in final talks to become an intelligence provider to one of the world’s largest private intelligence companies, which is a particularly exciting opportunity
  • Have a highly successful internship programme, which is helping students move into full-time employment, allowing Intelligence Fusion to deliver a positive social impact.

The investment raise to date

Investors currently have the chance to co-invest in this EIS-eligible opportunity alongside 2 Venture Capital funds and 15 other sophisticated investors.

Having raised over £360,000 and reaching 91% of their £400,000 funding target, being EIS-eligible, investors can potentially benefit from a range of lucrative tax reliefs, including:

  • Up to 30% upfront Income Tax relief
  • Capital Gains Tax (CGT) relief
  • Inheritance Tax (IHT) relief 
  • CGT deferral relief

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If you're interested in this investment offer, you can view the full opportunity on the Intelligence Fusion Online Pitch.

At 91% funded, there is only a small allocation of the offer remaining. As such, if you wish to invest and have any questions, I'm happy to answer any questions - you can contact us 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.