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.
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.

Dan Smith headshot
Portfolio News
Company News

Growth Capital Ventures appoints new Investor Relations Director to drive the expansion of GCV Invest

Durham, UK

Growth Capital Ventures (GCV), an FCA Authorised Investment Firm with offices in County Durham and London, today announced the appointment of Dan Smith as Investor Relations Director. Smith will work closely with the co-founders, Norm Peterson and Craig Peterson, to drive the growth and expansion of GCV Invest, the firm's new private investor network for experienced investors.

In his role as Investor Relations Director, Smith will be responsible for building and maintaining relationships with GCV Invest's investors and driving the expansion of the network through the launch of strategic partnerships across the UK with advisory firms.

"We are delighted to welcome Dan to the team at GCV," said Norm Peterson, co-founder and Chief Executive Officer of GCV. "His experience and expertise in investor relations will be invaluable as we continue to grow and expand GCV Invest. We are confident that a relationship-driven approach will help us to build strong connections with our investors and strategic partners that will drive the growth of our network."

GCV Invest provides experienced investors with access to carefully selected investment opportunities across three core asset classes: venture capital, private equity and property. Many of the investment opportunities provided by GCV benefit from EIS and SEIS tax reliefs, and the firm's approach allows suitably experienced investors to construct a bespoke, well-diversified investment portfolio on a deal-by-deal basis.

"I am thrilled to be joining GCV at such an exciting time in the firm's growth," stated Smith. "GCV Invest is a unique offering that provides experienced investors with access to some of the best-performing alternative asset classes. I look forward to working with Norm, Craig and the team to build strong relationships with our investors and to launch strategic partnerships that will drive the expansion of GCV Invest."

For more information about GCV Labs and Growth Capital Ventures, please visit www.growthcapitalventures.co.uk 

About Growth Capital Ventures:

Growth Capital Ventures is an FCA Authorised Investment Firm that operates across two business units:

GCV Invest - Private Investor Network for experienced investors specialising in alternative investments across three core asset classes: venture capital, private equity and property. 

GCV Labs - Impact-driven Venture Builder dedicated to launching products and new ventures that make a positive difference to society, the environment, and the economy.

With offices in the North East of England and London, GCV has a proven track record of creating, launching, scaling and exiting businesses, providing investors with the ability to access tax-efficient opportunities and build a well-diversified investment portfolio. 

Contact: 0330 102 5525

For media enquiries, please contact Harvey Hall, Investor Communications and Marketing Executive: harvey.hall@growthcapitalventures.co.uk

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.