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: House Price Surge, Global Investment in UK Start-Ups, Strengthening UK-EU Ties & SME Growth Prospects
Weekly Briefing
Matthew Robineau
· 4 min read
· Updated on

Weekly Briefing: House Price Surge, Global Investment in UK Start-Ups, Strengthening UK-EU Ties & SME Growth Prospects

This week, we delve into the evolving dynamics of the UK economy, from an unexpected surge in house prices to a continued rise in international investment into UK start-ups.

We also examine efforts to strengthen post-Brexit ties with Europe, a pivotal step towards enhancing trade and collaboration. Meanwhile, SMEs are closing the year with momentum, but face important decisions on cost management, hiring, and innovation that will shape their long-term growth.

Read on to discover how the UK's resilience and adaptability could shape its future growth trajectory.

UK Property

House Prices See Unexpected Surge in November

  • UK house prices experienced their fastest annual growth in nearly two years during the 12 months to November, rising 3.7% compared to 2.4% in October, according to Nationwide. This increase marks the sharpest increase since November 2022, pushing average house prices to £268,144, just 1% below their historical peak.

  • According to Savills, despite stretched affordability due to elevated interest rates, housing market activity has shown resilience, with increased activity likely over the next five years.

  • Nationwide's chief economist Robert Gardner highlighted that household debt levels are at their lowest relative to income since the mid-2000s, potentially alleviating financial strain for borrowers despite high house affordability.

  • Monthly price growth reached 1.2% between October and November, the largest increase since March 2022, contradicting expectations given by current borrowing conditions.

  • The Zoopla survey revealed lifestyle preferences heavily influencing housing decisions, with 36% of homeowners considering proximity to pubs a factor. Younger buyers, especially Gen Z, prioritised this feature.

  • “The acceleration in house price growth is surprising since affordability remains stretched by historic standards, with house prices still high relative to average incomes and interest rates well above pre-Covid levels,” Robert Gardner stated.

European FDI

International Investment Powers UK Tech Start-ups

  • International investors have significantly boosted UK start-ups this year, with landmark deals like Wayve’s $1bn funding for AI and Monzo’s $430m raise highlighting the country’s global appeal.

  • US investors contributed over a third of the capital in UK start-ups in 2023, while interest from the Middle East is also increasing. The EY European FDI rankings confirm this trend, with the UK recording 985 new FDI projects, a 6% rise from 2022.

  • This number places the UK slightly behind France but means the UK moves ahead of Germany into second place out of the top 3 spots.

  • Key sectors driving international interest include deep tech, Fintech, biotech, AI, and climate tech, making it clear more than ever that the tech sector is truly leading the way. These fields are attracting high-quality business builders, enhancing the UK’s ecosystem and fostering a belief in its ability to produce globally significant companies.

  • Domestic investors currently account for just 40% of UK venture capital, lagging behind countries like France and Germany, where over 70% is sourced locally. This highlights a significant opportunity for UK investors to tap into the potential of high-growth start-ups through schemes like the Enterprise Investment Scheme (EIS), which combines tax efficiency and high growth potential with the chance to support innovative businesses driving the economy forward.

  • Policy recommendations from the BVCA include incorporating venture capital into pension reforms to channel domestic savings into growth-stage businesses, fostering a sustainable investment ecosystem.

  • “Global businesses can be built in the UK using non-UK capital,” Ashish Patel explained. “But we must remain cautious about an over-reliance on foreign funds and the potential shift of business hubs overseas due to shareholder pressures.”

UK Economy

Labour Seeks Stronger Economic Ties with Europe

  • Chancellor Rachel Reeves attended a Eurogroup finance ministers’ meeting, marking the UK’s first engagement of this nature since Brexit. Reeves emphasised the need to reset relations with Brussels to boost trade and living standards, calling this a “milestone moment.”

  • Reeves outlined the mutual benefits of improved trade relations, noting that economic growth is not a zero-sum game and that all countries could benefit from enhanced productivity and competitiveness.

  • German Finance Minister Jörg Kukies welcomed the dialogue, though he acknowledged limits imposed by the UK’s non-membership in the single market and customs union. Trade intensity between the UK and Germany has decreased significantly since Brexit, highlighting opportunities for renewed collaboration.

  • While Reeves focused on EU ties, critics suggested pursuing a US-UK trade deal, with shadow business secretary Andrew Griffith citing the potential benefits of prioritising American markets over European counterparts.

  • Irish Finance Minister Jack Chambers characterised the meeting as a “turning of a new leaf” in
    UK-EU relations, pointing to a change in tone compared to prior years.

  • While specific policies are yet to be outlined, the potential benefits of this exercise remain uncertain. However, with Trump-era tariffs casting a shadow, it’s evident that the UK must sharpen its focus on trade while maintaining a balanced approach to the broader economy.

  • “It is in our national interest to have more normal trading relations with our nearest neighbours and trading partners,” Reeves explained, emphasising the importance of fostering economic growth through collaboration.

SMEs Focus on Growth Amid Budget Challenges

  • Despite concerns surrounding the Autumn Budget, many SMEs are ending the year on a strong note. However, with budget policies yet to take effect, there are lingering long-term uncertainties that could impact their sustained growth.

  • As a result, top priorities for over 43% of firms include boosting new business sales and reducing fixed costs. Diversifying business models and developing new products or services have now become key for many businesses.

  • Hiring ambitions appear tempered too, with only 7% of SMEs prioritising senior hires and 9% planning to recruit younger talent, a trend likely influenced by recent National Insurance changes, which soon increase cost pressures.

  • Regionally, London leads growth initiatives, with 94% of businesses prioritising expansion. The West Midlands and North East follow closely at 83%, showcasing regional strength. The media and manufacturing sectors are particularly active, with 92% and 90% of businesses respectively focusing on growth.

  • Financial prudence is also a priority, with SMEs working to tackle fixed costs and build reserves. This approach reflects cautious optimism and a focus on long-term sustainability as businesses navigate an increasingly complex economic environment.

  • “A significant proportion are already planning growth projects for the year ahead,” said Judith Lancaster of Finance Nation, “We are committed to helping businesses find the funding they need and achieve the much-needed growth they're looking for.”

Final Note

This week's stories highlight a range of evolving dynamics across investment and the economy, from an unexpected surge in house prices to increased international investment in UK start-ups. However, the overarching narrative from this week is one of opportunity and adaptation. The UK's tech sector continues to attract global capital, solidifying its position as a hub for innovation, while calling for more domestic venture capital investment points to untapped potential among UK-based investors.

Efforts to strengthen ties with Europe represent a key step in recalibrating post-Brexit relations, shifting the focus from competition to collaboration. SMEs are closing the year with momentum, but challenges loom ahead. Tough decisions on cost management, hiring, and innovation will test their resilience. Yet, these pressures may also spark growth, driving businesses to adapt and evolve in an increasingly complex economic environment.

As economic conditions shift, the UK's ability to attract diverse investment, foster innovation, and build strong trade partnerships will determine its path forward. Securing Britain’s position as a leader in investment and trade across the continent will continue to prove an intensely scrutinised political aim as we move into 2025…
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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.