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.
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.

Industry Insights

12 days of property investing facts, figures and statistics

Christmas is on the horizon. We're 12 days away from the big day, with lots taking place at GrowthFunders.

Over the past few weeks in particular we've been sharing a wealth of information around property investing. We hosted our 'introduction to property investment' webinar in mid-November, launched our 'integrating property investments into your portfolio' guide at the same time and have discussed a variety of property investment-related topics on our blog recently.

It really is a brilliant sector, and there's such a lot to understand and be aware of. It makes it easier that so much of the information is genuinely fascinating.

And so that leads us perfectly onto our focus for the next 12 days - sharing some of the most intriguing property investing facts!

From today until Christmas Eve we'll be publishing a different property investing fact every single day on our social media accounts (Twitter, Facebook and LinkedIn). We'll then be updating this post daily with the latest fact, so by the time Christmas comes around, you'll have 12 brilliant property investing facts to enjoy - Merry Christmas!

Day 1: Since 2000, residential property has grown in value at an average rate of 6.6% per year

First-Day-Of-Property-Investing-Christmas-2017.gifDay 2: 41% of P2P lending in 2015 was into property


Day 3: You can invest £20,000 into a property fund, every year, tax free

Third-Day-Of-Property-Investing-Christmas-2017-1.gifDay 4: Rented homes from private landlords in England increased to 15.4% in the 10 year period to 2011


Day 5: By 2036, the average house price in the UK could be £800,000


Day 6: UK house prices have more than quadrupled every 20 years


Day 7: For every £1,000 of rental income received today, you'll receive £2,226 in 20 years


Day 8: Property funds Land Securities Group and British Land Securities both feature in the FTSE100


Day 9: Over a quarter of 2015's equity crowdfunding market was property investment


Day 10: The Innovative Finance ISA allows P2P platforms to offer tax-free interest payments


Day 11: Real estate contributes £94bn to the UK economy


Day 12: The UK's real estate market value is equivalent to 21% of the country's net wealth


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.