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.
Take 2 mins to learn more
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 Listing

all Industry Insights Investing Capital Tax Efficient Investing Alternative Investments Investment Campaigns Raising Capital Company News EIS Portfolio Diversification Venture Capital Impact Investing Inflation Proof Investments Inheritance tax property Capital Gains Tax SEIS Tech Investments Venture Builder tax efficient investments Fintech Portfolio Company Private Equity Real Estate n gage.io
ESG Investing
Insights
Impact Investing
Alternative Investments
Portfolio Diversification
Insights Impact Investing Alternative Investments Portfolio Diversification
· 7 min read

Why does impact investing attract sophisticated investors?

Alyssa Peterson
Read more about Why does impact investing attract sophisticated investors?
High rise skyscraper
Insights
Alternative Investments
Portfolio Diversification
Inflation-Proof Investments
Insights Alternative Investments Portfolio Diversification Inflation-Proof Investments
· 10 min read

What are the best alternative investments in the UK in 2024?

Alyssa Peterson
Read more about What are the best alternative investments in the UK in 2024?
rising inflation
Insights
Alternative Investments
Inflation-Proof Investments
Insights Alternative Investments Inflation-Proof Investments
· 6 min read

The most effective inflation-proof investments in 2023

Alyssa Peterson
Read more about The most effective inflation-proof investments in 2023
What is a Venture Builder
Insights
Raising Capital
Venture Capital
Venture Builder
Insights Raising Capital Venture Capital Venture Builder
· 2 min read

What is a Venture Builder?

Craig Peterson
Read more about What is a Venture Builder?
ESG Wind Farm
Insights
Tax Efficient Investing
Impact Investing
Insights Tax Efficient Investing Impact Investing
· 4 min read

How the UK’s growing appetite for ESG investing could impact your portfolio

Harvey Hall
Read more about How the UK’s growing appetite for ESG investing could impact your portfolio
London Tech
Insights
Tech Investments
Insights Tech Investments
· 6 min read

2021 was a record year for UK tech investment - what now?

Harvey Hall
Read more about 2021 was a record year for UK tech investment - what now?
Insights
Industry Insights
Alternative Investments
Insights Industry Insights Alternative Investments
· 6 min read

How alternative investments can mitigate UK inflation impacts

Harvey Hall
Read more about How alternative investments can mitigate UK inflation impacts
Insights
Industry Insights
Venture Capital
Insights Industry Insights Venture Capital
· 4 min read

The Autumn Budget: 3 key takeaways for venture capital investors

Harvey Hall
Read more about The Autumn Budget: 3 key takeaways for venture capital investors
Insights
Tax Efficient Investing
Insights Tax Efficient Investing
· 5 min read

How to minimise inheritance tax using tax efficient investments

Harvey Hall
Read more about How to minimise inheritance tax using tax efficient investments
Insights
Industry Insights
Insights Industry Insights
· 6 min read

Budget announcement: 4 possible changes affecting investors

Harvey Hall
Read more about Budget announcement: 4 possible changes affecting investors
Insights
Industry Insights
Insights Industry Insights
· 4 min read

UK startup investment surge could see business unicorns multiply

Harvey Hall
Read more about UK startup investment surge could see business unicorns multiply
Insights
Tax Efficient Investing
Insights Tax Efficient Investing
· 3 min read

SEIS reinvestment relief: what is it and how does it work?

Harvey Hall
Read more about SEIS reinvestment relief: what is it and how does it work?


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.