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: US FDI Surge, Record FTSE 100 Growth, Housing Market Insights & UK Economic Challenges

This week, we take a look into the surge of U.S. foreign direct investment, highlighting its growing dominance in key sectors like semiconductors and renewable energy. We’ll then look at the record-breaking performance of the FTSE 100, driven by major players, and the strong outlook for UK housing in 2025. As the UK’s economic landscape shifts, we explore the latest pay growth trends, housing market activity, and the potential impact of inflation on future Bank of England decisions.

Read on for insights into how these key developments are shaping both domestic and international markets.


U.S. Cross-Border Investment Surge

  • The U.S. share of global foreign direct investment (FDI) reached a record 14.3% by November 2024, up from 11.6% in 2023, highlighting robust economic momentum compared to Europe and China according to fDI markets.

  • The U.S. secured over 2,100 greenfield projects, far surpassing China (under 400 projects) and Germany (470 projects), which saw significant declines. Economists attribute this to geopolitics and Western nations’ “de-risking” from China, alongside Europe’s energy price surge post-Ukraine invasion.

  • Semiconductors, renewable energy, and aerospace led the surge in U.S. FDI, with total project values exceeding $227 billion. IMF forecasts also show that U.S. GDP growth will outpace the Eurozone in 2025, at 2.7% versus 1%.

  • Analysts point to reshoring and "friend-shoring" trends as companies aim to secure supply chains in strategic sectors like healthcare and microchips. U.S. policies incentivizing domestic production contributed to the lowest U.S. outbound FDI in nearly two decades.

  • Western Europe was the main contributor to this increased FDI, accounting for 62%, up from 58% pre-pandemic. This could potentially signal stronger transatlantic ties amid rising trade tensions with China.

  • Trump’s election “doesn’t change the investment incentives and the economic picture” for investors, said Richard Bolwijn, head of investment research at UN trade body Unctad’s investment and enterprise division. “From that perspective, the attractiveness of the US for world investment will continue to go up.”

FTSE 100’s Record Growth

  • The FTSE 100 recently hit a new high of 8,548.59, gaining 4.2% year-to-date compared to the S&P 500’s 1.9%. Analysts speculate it could reach 9,000 in 2025 due to undervalued UK stocks, with predictions driven by potential BoE rate cuts.

  • A big contributor to this rise comes from FTSE heavyweights like BP and Shell, following a 7.7% increase in oil prices this month. Similarly, banking stocks showed robust growth, with Barclays alone gaining 9% this year, reinforcing the index’s upward trajectory.

  • Global investor sentiment favours the FTSE 100 due to its high dividend yield and currency benefits from a 9% weaker pound against the dollar with over 70% of FTSE earnings being generated overseas, enhancing profitability.

  • Analysts highlight cyclical benefits from rising global demand, especially from China, and the index’s exposure to mining and commodity stocks. The potential for inflation to return globally could further aid the FTSE.

  • Predictions suggest the FTSE could surpass 10,000 by 2026, depending on continued strong performance from commodities and banks. However, the possibility of stagnation remains if global conditions shift unfavourably.

  • “The FTSE 100 is effectively a global metric,”said Jonathan Unwin of Mirabaud Wealth Management, emphasizing its resilience and global exposure despite domestic economic concerns.

UK Housing Market Growth

  • The UK housing market started 2025 with a surge in activity - new listings rose 11%, sales agreements increased by 11%, and prices jumped 1.7% to an average of £366,189, the largest January increase since 2020.

  • A massive driver was buyers’ confidence, which improved with falling interest rates, now forecast to drop further after inflation fell to 2.5% in November. However, average prices remain £9,000 below the May 2024 peak due to affordability concerns.

  • Rightmove predicts a 4% annual price rise, driven by increased competition among sellers. Yet, overpricing remains a risk, particularly for those optimistic about continued demand growth.

  • Upcoming changes to stamp duty in April are still likely to challenge first-time buyers in higher-priced areas, though cheaper regions may remain unaffected.

  • “New sellers have started the year with a bang,” said Colleen Babcock of Rightmove. “However, competition and rate fluctuations may temper optimism”

UK Pay Growth and Economic Dilemmas

  • UK pay growth accelerated to 5.6% in the three months to November 2024, surpassing October’s 5.2% figure.

  • Unemployment ticked up slightly to 4.4%, indicating a cooling labour market, with job losses linked to higher borrowing costs and employers facing rising costs while grappling with constrained consumer demand.

  • Interest rate expectations have shifted; financial markets predict 2-3 BoE cuts in 2025 but volatility in bond markets has created uncertainty around the timing and impact of these looming decisions.

  • Higher borrowing costs have impacted mortgage affordability, feeding into the broader economic uncertainty with analysts warning that this dynamic could further pressure demand and wage growth, creating a spiral.

  • “The full impact of the changes to national insurance and the minimum wage, announced at the budget, won’t be fully seen until later in the year” said Jane Gratton, the deputy director of public policy at the British Chambers of Commerce.

Final Note

This week’s updates underscore a period of significant change across global investment and UK economic landscapes. The U.S. continues to dominate foreign direct investment, with a record 14.3% global share, driven by reshoring and strong sectoral growth.

Pay growth in the UK has reached 5.6%, indicating economic resilience, but the pressure from higher borrowing costs and inflation remains a concern. As the Bank of England prepares for potential interest rate cuts, the outlook is mixed, with some sectors set to benefit while others may struggle under the weight of ongoing volatility, with tech-based companies likely to come off better than physical brick-and-mortar based firms.

Looking ahead, the UK’s economic strategy in 2025 will be critical. The ability to navigate these challenges while seizing growth opportunities in both traditional and emerging sectors will determine the nation’s competitiveness. Economic stability and continued investor confidence will remain critical moving forward.
Driving Growth.
Creating Value.
Delivering Impact.

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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.