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.
Take 2 mins to learn more
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.

Insights Listing

all Industry Insights Investing Capital Tax Efficient Investing Investment Campaigns Alternative Investments Raising Capital Company News EIS Portfolio Diversification Impact Investing Venture Capital Inflation Proof Investments Inheritance tax property SEIS Capital Gains Tax Tech Investments Venture Builder Fintech Portfolio Company n gage.io tax efficient investments
Jeremy Hunt, The Treasury and the housing market
Insights
Insights
· 4 min read

Finance & investment recap: rising Bank Rate, record VC and a settling housing market

Alyssa Peterson
Read more about Finance & investment recap: rising Bank Rate, record VC and a settling housing market
UK tax return sheet, calculator and pen
Insights
Insights
· 3 min read

SEIS and EIS rules: qualifying criteria and investor limits

Harvey Hall
Read more about SEIS and EIS rules: qualifying criteria and investor limits
HMRC building
Insights
Industry Insights
Capital Gains Tax
Insights Industry Insights Capital Gains Tax
· 3 min read

What are the capital gains tax rates in the UK?

Alyssa Peterson
Read more about What are the capital gains tax rates in the UK?
UK skyline
Insights
Tax Efficient Investing
Insights Tax Efficient Investing
· 9 min read

10 ways for high earners to reduce their tax bill in the UK

Alyssa Peterson
Read more about 10 ways for high earners to reduce their tax bill in the UK
UK property
Insights
Industry Insights
Inheritance tax
Insights Industry Insights Inheritance tax
· 7 min read

Rising property wealth set to boost Treasury's inheritance tax receipts by £5.4 billion: what might this mean for you?

Alyssa Peterson
Read more about Rising property wealth set to boost Treasury's inheritance tax receipts by £5.4 billion: what might this mean for you?
couple walking along beach with dog
Insights
Tax Efficient Investing
Inheritance tax
Insights Tax Efficient Investing Inheritance tax
· 10 min read

Investing to reduce inheritance tax: how does it work?

Alyssa Peterson
Read more about Investing to reduce inheritance tax: how does it work?
Contemplating inheritance tax
Insights
Inheritance tax
Insights Inheritance tax
· 5 min read

What is the inheritance tax threshold in the UK?

Alyssa Peterson
Read more about What is the inheritance tax threshold in the UK?
Father and son sat in front of screen inheritance tax planning
Insights
Inheritance tax
Insights Inheritance tax
· 13 min read

How to avoid inheritance tax: key considerations and strategies

Alyssa Peterson
Read more about How to avoid inheritance tax: key considerations and strategies
Insights
Investing Capital
Alternative Investments
Portfolio Diversification
Inflation-Proof Investments
Insights Investing Capital Alternative Investments Portfolio Diversification Inflation-Proof Investments
· 4 min read

Private market investments explained

Alyssa Peterson
Read more about Private market investments explained
Stock Exchange
Insights
Investing Capital
Alternative Investments
Insights Investing Capital Alternative Investments
· 9 min read

Best investment options: 7 alternatives for experienced investors

Alyssa Peterson
Read more about Best investment options: 7 alternatives for experienced investors
One of the UK's Top 10 FinTech clusters
Insights
Fintech
Alternative Investments
Venture Capital
Insights Fintech Alternative Investments Venture Capital
· 8 min read

The growing popularity of regional venture capital in the UK

Alyssa Peterson
Read more about The growing popularity of regional venture capital in the UK
Simon Lenny alongside alternative investments title
Insights
Insights
· 3 min read

Alternative investments: a remedy to growing volatility?

Simon Lenney
Read more about Alternative investments: a remedy to growing volatility?


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.