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: Key Spring Statement Takeaways, Inflation Trends & How Fintech is Leading Hiring
Weekly Briefing
Matthew Robineau
· 3 min read
· Updated on

Weekly Briefing: Key Spring Statement Takeaways, Inflation Trends & How Fintech is Leading Hiring

In this week’s edition of the GCV Weekly Briefing, we delve into the key takeaways from today’s Spring Statement, the latest inflation data, and the dominant role fintech is playing in driving tech sector hiring—despite facing its own challenges. 

Each of these stories sheds light on the evolving economic and investment landscape, highlighting the balancing act policymakers and businesses must navigate. Read on for a deeper insight into these crucial developments.

 

UK Economy

Spring Statement 2025: Key Insights

  • Rachel Reeves opened the Spring Statement by reaffirming Labour’s commitment to economic stability, emphasizing that the Bank of England has cut interest rates three times since Labour took office. However, she acknowledged that economic headwinds—such as stalled tax receipts, weaker-than-expected growth, and global uncertainty driven by Trump’s second presidency—have tightened fiscal space.

  • On the back of this, the  Office for Budget Responsibility (OBR) revised its GDP growth forecast for 2025 down from 2% to 1%, reflecting economic challenges. However, it upgraded forecasts for subsequent years, with GDP expected to grow by 1.9% in 2026, 1.8% in 2027, and stabilizing at 1.7-1.8% through 2029.

  • No new tax increases were announced, but Reeves emphasized the need to tackle tax evasion. She pledged to use advanced technology to help HMRC recover an additional £1bn, bringing the total raised from tax avoidance measures to £7.5bn. While Labour has avoided immediate tax hikes, political observers question whether this position will hold until the full budget in autumn.

  • On another note, welfare reforms emerged, as a controversial pillar of the statement. The OBR expects savings from planned benefit cuts will raise £3.4bn by 2029-30. Reeves defends the changes, stating, “The Labour party is the party of work,” and highlighting that over 1,000 people qualify for Personal Independence Payments (PIP) daily, which she described as a “waste of their potential.” Critics within Labour argue the cuts will disproportionately harm vulnerable individuals, raising tensions within the party.

  • It has also been announced that defence spending will rise to 2.5% of GDP by April 2027, funded by cuts to international aid with an extra £2.2bn to be allocated to the Ministry of Defence next year. Reeves declared that Labour aims to position the UK as a “defence-industrial superpower,” integrating defence spending into its broader economic growth strategy.

  • Rachel Reeves confirmed ISA reforms are still being considered, with changes expected in the Autumn Budget. The government, alongside the FCA, aims to boost retail investment, while platforms push for ISA simplification to increase stock market participation.

Fintech Leads UK Tech Hiring but Faces Skills Shortage Challenges

  • Fintech firms accounted for 21% of all tech hiring among UK startups and scale-ups, adding 2,127 employees in the past year, a hiring surge that outpaced other sectors, reinforcing fintech’s role as a key driver of UK tech growth.

  • Despite economic challenges, strong sustained investor interest has propelled fintech hiring. The sector’s rapid growth is said to be driven by demand for digital banking, payment platforms, alternative lending and investments.

  • Among industry giants, Revolut continues to dominate, employing over 10,000 people globally. The digital bank was recognised as the UK’s most valuable fintech firm in 2023, reaching a £24bn valuation after a major funding round, underscoring its market leadership.

  • Despite fintech’s hiring boom, the UK tech sector faces a skills shortage, which could hinder the government’s ambitions to accelerate AI-driven economic growth. In response, Rachel Reeves has proposed high-skill visas to attract overseas AI talent, with an immigration white paper set to be published later this year.

  • The research highlights London’s continued leadership in UK tech, with 75% of hiring firms based in the capital. London’s tech sector saw a 23% headcount increase, significantly outpacing the 14% growth rate recorded in other regions across the UK.

UK Inflation Dips to 2.8% in February 

  • UK inflation eased to 2.8% in February, down from 3.0% in January, according to the ONS. While this was lower than expectations of 2.9%, it remains above the Bank of England’s 2% target, with core inflation at 3.5%.

  • Despite falling inflation, rising costs may loom on the horizon. The energy price cap increase combined with broader price adjustments by businesses in April are expected to put renewed pressure on budgets. Analysts warn that while wage increases and pension upratings may offer some relief, many households have already accounted for these gains in their budgets.

  • As we know, the Bank of England held interest rates at 4.5% in March, with traders now seeing a 76.8% chance of a cut in May. However, expectations of an August cut have weakened amid economic uncertainties.

  • The Bank of England still expects inflation to edge above 3% later this year before gradually returning to its 2% target in 2026. Broader ONS inflation measures, including CPIH (3.7%) and Core CPIH (4.4%), indicate that inflation remains embedded in the economy, albeit at a slowing pace.

 

Final Note 

Covering key developments from the Spring Statement, fintech hiring trends, and the latest inflation data, this week’s briefing highlights the challenging balance policymakers are facing in promoting economic growth, skilled hiring, and improved living standards while managing government budgets and inflation.

Looking ahead, eyes will start to turn to the next Budget, where ISA reforms and broader tax policies will be under scrutiny. Next week’s briefing will undoubtedly track market reactions to the Spring Statement, the evolving interest rate situation & more.
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