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.
Portfolio News
Dan Smith
· 2 min read
· Updated on

GCV exits from Intelligence Fusion generating a profitable return for investors

Growth Capital Ventures (GCV) and its private investor network have exited from Intelligence Fusion after the threat intelligence technology company was acquired by Sigma7, providing a profitable return for all investors.

GCV has supported the Intelligence Fusion team since inception in 2015 on both an investment and technology basis. Through GCV Labs, the company’s venture builder division, GCV worked closely with founder Michael McCabe on the concept from idea stage through to the launch of the core threat intelligence platform. GCV Labs provided a a full service software development solution combined with lean start up support to develop and test the product and business model before raising capital to scale up.

A US-based corporation with a global presence and client base, Sigma7 is creating the first independent and all-domain risk services platform, acquiring the highest quality risk services businesses, technologies and talent in each specialised domain. Intelligence Fusion is seen as a key component of Sigma7’s strategy.

Andrew Hersh, CEO of Sigma7, said,

Intelligence Fusion is the crown jewel in threat visualization and monitoring solutions currently serving several Fortune 100 customers, large city law enforcement, and intelligence communities. We are excited to leverage the platform in existing and new ways to deliver unmatched client value.

The acquisition will allow Intelligence Fusion’s leadership team to immediately and continuously scale their capabilities, with Sigma7 investing in the expansion of Intelligence Fusion’s team and resources in Durham whilst expanding their operations into the United States and elsewhere.

Norm Peterson, CEO of GCV said,

I am thrilled to see Michael and the Intelligence Fusion team embarking on the next phase of their journey. It has been a pleasure to have worked so closely together and see Michael and the company flourish in every respect. The strategic acquisition by Sigma7 is particularly exciting and we shall continue to champion the team as they go from strength to strength.

Michael McCabe, CEO of Intelligence Fusion said

The support Intelligence Fusion has received from GCV - from the early stages of our journey via GCV Labs and continually from the investor network - has been invaluable, with the knowledge and experience the team provided allowing me to realise my vision for Intelligence Fusion from day one. Supporting us as we grew, I am now extremely excited as the next phase of our journey begins, working closely with Sigma7 to expand the Intelligence Fusion team and further grow throughout the UK, internationally and globally.

Growth Capital Ventures is an FCA-authorised investment firm and venture builder.

Through our private investor network, GCV Invest, we provide experienced investors with access to carefully-selected alternative investment opportunities across venture capital, private equity and property.

Through GCV Labs, our venture builder division, we help founders to build, launch and scale businesses that transform industries.

 
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.