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.
This week, we take a closer look at key developments in the UK economy, highlighting above-average growth in the professional services sector and a promising future with the expansion of ultrafast broadband. We also explore movements in the UK venture capital space, with health tech, robotics, and fintech driving investment. On the flip side, Germany’s automotive industry is facing significant challenges, from plant closures to production cuts, reflecting broader economic issues. The shift away from reliance on outdated trade models has left many questioning the future stability of Europe’s industrial base. Professional Services Drives UK Growth through 2024 The UK’s professional services sector, which includes law, architecture, and R&D, played a pivotal role in driving economic growth in Q3, expanding by 0.7% quarter on quarter, according to data from the ONS. This sector outpaced the broader UK economy, growing 3.9% compared to the previous quarter, marking a stark contrast to the overall 1.3% growth seen in the country over the same period. Much of this growth is attributed to legal services, where the strength of English law and international talent continue to attract global clients, as well as R&D, which is fueling technological innovation across various industries. Although consumer demand remained weak in early 2024, business-to-business services have seen an uptick, with many firms investing in innovation and research to stay competitive. The resilience of the legal and R&D sectors, particularly in exports, has helped insulate the UK from global economic volatility, positioning these services as critical to the country’s economic strategy. “Professional services have been the locomotive of UK growth this year,” remarked Robert Wood, economist at Pantheon Macroeconomics, underscoring the sector’s critical role in the economy. Ultrafast Full-Fibre Broadband to Boost UK Economy According to a report, BT Group’s expansion of ultrafast broadband across the UK is expected to generate an impressive £66 billion in economic benefits by 2029, creating far-reaching impacts on productivity and public services. The rollout of full-fibre broadband will enhance remote working capabilities, with potential annual productivity gains of £19 billion, thanks to improved access to digital services across the nation. Additionally, access to full-fibre broadband is projected to increase property values by £1,900 on average, as homes with faster internet access become more desirable. The healthcare sector is expected to benefit significantly from this digital infrastructure, with an estimated five million online GP appointments per year by 2029, reliable internet connections are paramount for improving healthcare access and efficiency. Over 16 million UK homes already have access to ultrafast broadband, and with plans to extend this coverage to 30 million by 2030, the country is positioning itself as a leader in digital connectivity. “The rollout of full-fibre broadband is a growth and prosperity engine for the UK,” said Clive Selley, CEO of Openreach, emphasising the transformative potential of this nationwide digital infrastructure. UK Venture Capital Market Showing Signs of Recovery The UK venture capital market is bouncing back in 2024, with PitchBook reporting that deal sizes, valuations, and funding volumes have all surged in recent months. The third quarter alone saw notable investments in the tech sector, such as Flo’s £156 million Series C round and Amber Therapeutics’ £78 million Series A, signalling growing investor confidence in UK-based startups. Pre-money valuations for UK-based ventures have shown significant growth, especially at the pre-seed and venture growth stages, surpassing previous years' benchmarks and reflecting the increasing attractiveness of UK firms. Unlike many European countries, the UK has seen a 31% increase in median pre-seed valuations, indicating that British startups are commanding a premium in an increasingly competitive, global venture capital market. One potential driver is the easing of inflation and interest rates, which has created a more favourable investment climate, with health tech and robotics companies emerging as key areas for growth. “The UK remains a resilient and attractive destination for venture capital, setting the bar for other European markets,” noted PitchBook in their latest report. Challenges for Germany’s Auto Industry Amid Economic Shifts Germany’s automotive sector, a key pillar of its economy accounting for 17% of exports, is facing significant headwinds as major players like Mercedes-Benz and Volkswagen announce plant closures and layoffs in response to growing financial difficulties. The country’s reliance on cheap Russian gas and trade with China has proven unsustainable, as energy prices rise and geopolitical tensions disrupt established trade patterns, it's becoming harder for automakers to maintain profitability. Most notably, Mercedes-Benz saw a sharp 50% decline in profits year-on-year, with several other automakers scaling back production due to soaring energy costs and fast-shifting global demand. These struggles are not only affecting Germany’s economy but also reverberating across global supply chains, particularly in the U.S. market, where vehicle production and pricing may be impacted by reduced supply from German manufacturers. In response to these challenges, German automotive companies are increasingly directing investments toward the U.S., signalling a shift in global manufacturing and leaving some question marks over the future of Germany's industrial base. “Germany’s challenges are a cautionary tale for global economies reliant on industries built around outdated, globalised trade models,” said Carsten Brzeski, an economist at ING. Final Note This week’s briefing covered some key economic trends both at home and in Europe. The UK’s professional services sector has been a strong growth driver, while ultrafast broadband expansion promises significant productivity gains. Coupled with rising Venture capital activity, particularly in health tech, robotics and fintech, the UK’s economic outlook isn't all bad. Meanwhile, Germany’s automotive sector struggles reflecting wider economic issues, highlighting some risks of outdated global trade models, and pressures that don't exist in solely our economy.
Weekly Briefing
Matthew Robineau
· 3 min read
· Updated on

Weekly Briefing: UK Professional Services Insight, Broadband Boost, Venture Capital Growth & German Auto Industry Struggles

This week, we take a closer look at key developments in the UK economy, highlighting above-average growth in the professional services sector and a promising future with the expansion of ultrafast broadband. We also explore movements in the UK venture capital space, with health tech, robotics, and fintech driving investment.

On the flip side, Germany’s automotive industry is facing significant challenges, from plant closures to production cuts, reflecting broader economic issues. The shift away from reliance on outdated trade models has left many questioning the future stability of Europe’s industrial base.

UK Economy

Professional Services Drive UK Growth Through 2024

  • The UK’s professional services sector, which includes law, architecture, and R&D, played a pivotal role in driving economic growth in Q3, expanding by 0.7% quarter on quarter, according to data from the ONS.

  • This sector outpaced the broader UK economy, growing 3.9% compared to the previous quarter, marking a stark contrast to the overall 1.3% growth seen in the country over the same period.

  • Much of this growth is attributed to legal services, where the strength of English law and international talent continue to attract global clients, as well as R&D, which is fueling technological innovation across various industries.

  • Although consumer demand remained weak in early 2024, business-to-business services have seen an uptick, with many firms investing in innovation and research to stay competitive.

  • The resilience of the legal and R&D sectors, particularly in exports, has helped insulate the UK from global economic volatility, positioning these services as critical to the country’s economic strategy.

  • “Professional services have been the locomotive of UK growth this year,” remarked Robert Wood, economist at Pantheon Macroeconomics, underscoring the sector’s critical role in the economy.

Ultrafast Full-Fibre Broadband to Boost UK Economy

  • According to a report, BT Group’s expansion of ultrafast broadband across the UK is expected to generate an impressive £66 billion in economic benefits by 2029, creating far-reaching impacts on productivity and public services.

  • The rollout of full-fibre broadband will enhance remote working capabilities, with potential annual productivity gains of £19 billion, thanks to improved access to digital services across the nation.

  • Additionally, access to full-fibre broadband is projected to increase property values by £1,900 on average, as homes with faster internet access become more desirable.

  • The healthcare sector is expected to benefit significantly from this digital infrastructure, with an estimated five million online GP appointments per year by 2029, reliable internet connections are paramount for improving healthcare access and efficiency.

  • Over 16 million UK homes already have access to ultrafast broadband, and with plans to extend this coverage to 30 million by 2030, the country is positioning itself as a leader in digital connectivity.

  • “The rollout of full-fibre broadband is a growth and prosperity engine for the UK,” said Clive Selley, CEO of Openreach, emphasising the transformative potential of this nationwide digital infrastructure.

UK Venture Capital

UK VC Market Showing Signs of Recovery

  • The UK venture capital market is bouncing back in 2024, with PitchBook reporting that deal sizes, valuations, and funding volumes have all surged in recent months.

  • The third quarter alone saw notable investments in the tech sector, such as Flo’s £156 million Series C round and Amber Therapeutics’ £78 million Series A, signalling growing investor confidence in UK-based startups.

  • Pre-money valuations for UK-based ventures have shown significant growth, especially at the pre-seed and venture growth stages, surpassing previous years' benchmarks and reflecting the increasing attractiveness of UK firms.

  • Unlike many European countries, the UK has seen a 31% increase in median pre-seed valuations, indicating that British startups are commanding a premium in an increasingly competitive, global venture capital market.

  • One potential driver is the easing of inflation and interest rates, which has created a more favourable investment climate, with health tech and robotics companies emerging as key areas for growth.

  • “The UK remains a resilient and attractive destination for venture capital, setting the bar for other European markets,” noted PitchBook in their latest report.

Global Economy

Challenges for Germany’s Auto Industry Amid Economic Shifts

  • Germany’s automotive sector, a key pillar of its economy accounting for 17% of exports, is facing significant headwinds as major players like Mercedes-Benz and Volkswagen announce plant closures and layoffs in response to growing financial difficulties.

  • The country’s reliance on cheap Russian gas and trade with China has proven unsustainable, as energy prices rise and geopolitical tensions disrupt established trade patterns, it's becoming harder for automakers to maintain profitability.

  • Most notably, Mercedes-Benz saw a sharp 50% decline in profits year-on-year, with several other automakers scaling back production due to soaring energy costs and fast-shifting global demand.

  • These struggles are not only affecting Germany’s economy but also reverberating across global supply chains, particularly in the U.S. market, where vehicle production and pricing may be impacted by reduced supply from German manufacturers.

  • In response to these challenges, German automotive companies are increasingly directing investments toward the U.S., signalling a shift in global manufacturing and leaving some question marks over the future of Germany's industrial base.

  • “Germany’s challenges are a cautionary tale for global economies reliant on industries built around outdated, globalised trade models,” said Carsten Brzeski, an economist at ING.

Final Note

This week’s briefing covered some key economic trends both at home and in Europe.

The UK’s professional services sector has been a strong growth driver, while ultrafast broadband expansion promises significant productivity gains. Coupled with rising Venture capital activity, particularly in health tech, robotics and fintech, the UK’s economic outlook isn't all bad. 

Meanwhile, Germany’s automotive sector struggles reflecting wider economic issues, highlighting some risks of outdated global trade models, and pressures that don't exist in solely our economy.
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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.