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.
Weekly Briefing
Matthew Robineau
· 3 min read
· Updated on

Weekly Briefing: BoE and US Fed Rate Cuts, FCA’s PISCES Launch, and UK Housing Market Outlook

In this week’s briefing, we turn our attention to key rate decisions both in the UK and the US, examining how central banks are navigating inflation pressures and economic growth. Domestically, we explore the FCA’s groundbreaking PISCES initiative and take a closer look at how the 2025 housing market might shape up. 

Read on to uncover how these dynamic changes could redefine the UK's path toward growth and innovation.

UK Investing

PISCES to Bring New Opportunities to UK Capital Markets

  • The Financial Conduct Authority (FCA) has introduced the Private Intermittent Securities and Capital Exchange System (PISCES) to enable secondary trading of private company shares.

  • The initiative has garnered support from the Economic Secretary to the Treasury, who is expected to bring the PISCES framework before parliament by May next year and sees PISCES as a way to diversify investment options and enhance market competitiveness.

  • Due to this growing interest, critics have raised concerns about insider trading risks, emphasizing that unequal access to information could harm market transparency. Additionally, some argue that PISCES may reduce IPO activity by making private trading more attractive.

  • To address these challenges, the UK government is also reforming listing rules and consolidating pension funds to direct more investment into businesses and infrastructure. These measures complement PISCES in boosting economic growth.

  • Because of the potential impact on private equity valuations and public market liquidity, the success of PISCES could redefine how investments are managed in the UK, but careful balancing of innovation and regulation will be critical.

  • The success of this initiative could set a precedent for other countries looking to revitalise their financial ecosystems amid global economic shifts towards private equity.

 

UK Economy

Bank of England to Hold Rates Amid Economic Uncertainty

  • The Bank of England is expected to maintain interest rates at 4.75% this week, responding to conflicting signals like rising inflation and GDP contraction.

  • As a result of rising energy costs, October inflation rose above target to 2.3%, with a further increase expected in November. This has reinforced the need for maintaining restrictive monetary policies to restabilize prices.

  • Businesses have warned that higher employer National Insurance Contributions announced in the Budget could lead to job cuts and price hikes, potentially creating further inflationary challenges.

  • In response to these economic pressures, analysts anticipate that GDP growth will rebound despite short-term uncertainty, with the Bank of England expected to gradually lower rates, potentially reaching 3.75% by late 2025.

  • Consequently, the BoE governor has highlighted that businesses' responses to rising labour costs are a critical issue, emphasizing the importance of maintaining inflation control measures for an extended period.

  • “We expect the forward guidance to remain broadly unchanged with the MPC reaffirming its message of gradual easing, while keeping rates sufficiently restrictive for sufficiently long to ensure that inflation sustains returns to the Bank’s two per cent mandate,” said Sanjay Raja, chief UK economist at Deutsche Bank.

 

UK Property

Positive Outlook for UK Housing Market in 2025

  • National estate agent Jackson-Stops forecasts a 4% rise in UK house prices by 2025, largely driven by increased buyer confidence. This optimism follows a predicted period of stable pricing throughout 2024.

  • As a result of this confidence, the market is expected to see a busy start in 2025, with buyers rushing to take advantage of expiring Stamp Duty incentives.

  • Due to this anticipated activity, challenges such as longer sales processes, regional legal disparities, and mortgage processing delays may persist. However, targeted policies for older demographics could improve market fluidity.

  • In contrast, buy-to-let activity might decline following increased Stamp Duty on second homes, though professional landlords may find opportunities as smaller landlords exit the market.

  • Upsizing families and downsizing retirees are predicted to dominate property transactions, while demand for properties near top-rated schools is expected to remain strong in regions like Kent and East Sussex.

  • For property investors, this is highly encouraging, as it highlights the potential for sustained growth, even following periods of already significant price increases.

  • “Renewed buyer confidence coupled with a strong supply of desirable properties suggests a balanced and active market,” said Marcus Browne from Jackson-Stops Taunton.

 

US Economy

US Fed Expected to Cut Rates Amid Economic Uncertainty

  • The Federal Reserve is expected to lower its benchmark interest rate by 25 basis points, reducing the target range to 4.25%-4.5%, despite inflation being currently above the Fed’s 2% target.

  • Inflation has been hovering around 2.5%-3%, prompting concerns among policymakers, as it remains well above the Fed's preferred target despite significant reductions from its 2022 peak.

  • This anticipated rate cut would mark a cumulative 1% reduction in rates since September, but Fed officials are likely to communicate caution to avoid loosening policy too quickly.

  • Former Kansas City Fed President Esther George and other hawkish voices argue against rapid rate cuts, emphasising the importance of patience. George noted, "Let's wait and see how the data comes in. Twenty-five basis points usually doesn’t make or break where we are, but I do think it’s a time to signal to markets and to the public that they have not taken their eye off the ball of inflation.”

  • The Fed's upcoming policy decision will be accompanied by an updated Summary of Economic Projections and the dot plot, which will offer deeper insight into the officials' outlook on inflation, unemployment, and GDP growth—key metrics that will guide future decisions.

Final Note

This week’s updates highlight transformative shifts in the UK’s financial and economic landscape, underscoring both emerging opportunities and ongoing challenges. 

The launch of PISCES marks a significant step in modernising capital markets, though finding the right balance between innovation and regulation will be crucial for its success.

Meanwhile, the Bank of England’s cautious stance reflects the complexity of managing inflationary pressures while supporting economic recovery—a challenge faced by many global economies today.

As these developments unfold, they paint a picture of a nation adapting to lead in an increasingly dynamic and pressured global environment, with investors remaining at the forefront of this change. 
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.