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

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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.
Insights
Investment Campaigns
Craig Peterson
· 3 min read
· Updated on

Intelligence Fusion: overfunding and on track to raise £500k

We're delighted to announce that GCV portfolio company Intelligence Fusion has broken through its £400,000 target and is currently on course to raise £500,000 to further develop its online global intelligence and risk management system.

The software-as-a-service business, which was set up in 2014, provides an industry leading platform to help security companies and global businesses manage risk and security issues by collecting, analysing and disseminating intelligence.

Investing milestones and continued business support

Having worked with Michael McCabe and the team at Intelligence Fusion for several years, previously assisting them with their proof of concept round, we're pleased to have been able to support their significant growth between their first round and their current round - and are delighted the support has helped them achieve this key milestone as part of their continued growth.

This milestone demonstrates two things:

  1. That Intelligence Fusion is an exciting business with a compelling business plan and an impressive management team
  2. That GrowthFunders can successfully guide ambitious, high growth companies through the fundraising process and introduce them to a wide and varied range of investors

What’s more, the second point has become even more possible through our recent collaboration with the market leading crowdfunding platform Crowdcube.

A true co-investment approach

This new partnership has enabled GCV to combine its own expertise, investor network and access to managed funds with access to Crowdcube’s 440,000 registered members.

By taking a true co-investment approach it allows retail investors from the general public to invest alongside experienced and sophisticated investors and financial institutions. Together we have ensured Intelligence Fusion’s funding target has been exceeded.

Adam Gillett, Partnership Manager for Crowdcube, said "We are delighted to have our first successfully funded deal working in collaboration with Growth Capital Ventures and could not be more pleased for the team at Intelligence Fusion to have secured the investment."

"This serves as a great example of how different players in the equity funding market can work together smartly and efficiently to deliver great results, freeing up more time for founders to do what they are good at - running their businesses. The Inclusion of Maven's Finance Durham fund in the round is a welcome addition and we intend to replicate this model with other ambitious, disruptive businesses in the region".

Intelligence Fusion will use the funds to enhance its platform with more features, so to provide global coverage at greater speed, frequency and quality as part of its plans to become a global intelligence leader in five years, with target annual revenues of about £5.5m.

Prior to going live on Crowdcube, the deal anchored £166,000 from both GCV's investor network and Maven's Finance Durham fund whilst on GVC’s own online co-investment platform, GrowthFunders. A further £271,820 was raised on the Crowdcube platform from both the GCV and Crowdcube investor base, with a further £50,000 from Maven’s Finance Durham fund taking the total to £487,820 to date.

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Intelligence Fusion is the first external business to be incubated by GLabs, the innovation arm of GCV. The team have supported Michael from idea stage, helping to source a software partner to launch the MVP, all the way through to the current stage, whereby they have successfully raised finance, which will see the business plough forward and achieve growth ambitions. The team within GLabs will continue to support Intelligence Fusion, and will become an even more integral part of their strategic partnership network.

Michael McCabe, founder and CEO of Intelligence Fusion, said "The support and quality of work received from the team at GCV has been invaluable, particularly throughout our recent raise. The team have been involved across many areas, from helping to prepare for the raise and assisting with technical development and marketing right the way through to strategic guidance. I am genuinely thankful for their support and delighted to have them on board as advisers as the business continues to move forward."

On both the collaboration with Crowdcube to complete the raise and working with Intelligence Fusion, GCV co-founder and CEO Norm Peterson explained "We’re delighted to have been able to close out this raise for Intelligence Fusion".

"Having worked with Michael McCabe and the team at IF for several years, assisting them with their proof of concept round previously, we're pleased to have been able to support their significant growth between their first round and their current round and that we have helped them achieve this key milestone as part of their continued growth."

"A true co-investment raise has been achieved, having secured investment from Maven’s Finance Durham fund, our own G.Ventures network and Crowdcube’s investor base shows the importance and appetite to co-investment into high growth investment opportunities."

"We are delighted to be partnering with Crowdcube to bring further co-investment opportunities to both parties investor base." 
Driving Growth.
Creating Value.
Delivering Impact.

Backed by

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.