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

The Dynamites 17 awards: congratulations to Atom Bank & Hive.HR!

The Dynamites 17 awards, sponsored by BT, took place in Newcastle’s Civic Centre last week.

An annual event, the Dynamites recognise successful North East organisations and highlight some of the most promising talent in our region - and we were over the moon to see two of our portfolio companies, Atom Bank and Hive.HR, receive awards for their brilliant work over the past year!

The awards

The annual Dynamite awards look to recognise the fantastic growth the regional IT sector has seen, driven by the talent that is emerging in the North East.

Held around an evening of entertainment and celebration, awards are given to businesses both large and small that have excelled in the last year.

With nine categories and 11 awards, the competition is always fierce within every category, with each business showing outstanding impact and progress in their development.

Success for our portfolio companies

Perfectly showcasing the high impact and high growth that's celebrated at the awards, Atom Bank and Hive.HR were amongst the award winners, both of who are Growth Capital Ventures portfolio companies.

With the companies at different stages of their growth, each are extremely deserving of their respective awards, and celebrations and recognition is undoubtedly due!

Atom Bank: Outstanding Achievement Award

Atom Bank's 'Outstanding Achievement' award at the Dynamites 17 Awards

Awarded the prestigious BT-sponsored 'Outstanding Achievement' award, Durham-based Atom Bank is one of the leading challenger banks.

Providing an app-only model that is disrupting the banking sector, they offer a personalised, simple banking experience that's available at all times, everywhere.

This award is a recognition of the work Atom have done in growing to a leading challenger bank and highlighting the incredible potential in the North East.

After investing into Atom early in their growth, Growth Capital Ventures were able to participate in a round earlier this year to aid in the next stage of their ambitious plans.

Hive.HR: New Business Of The Year Award

John Ryder of Hive.HR

Hive was awarded 'New Business of the Year', an award sponsored by Sage that recognises the promising growth demonstrated by Hive since launching their employee engagement platform early last year.

As a software-as-a-service (SaaS) business, Hive provide businesses with the tools, support and expertise to measure, understand and improve employee engagement.

Founded and grown in Newcastle, Hive utilises the deep pool of talent available in the region to create and develop the platform, simultaneously helping other businesses to improve through better engagement.

Having successfully raised their first SEIS-eligible round of growth capital through GrowthFunders in April 2016, Hive are now looking to return for a second round and accelerate their growth plans.

Supporting the North East

It is always exciting when we're able to celebrate the businesses and talent that are driving growth in the North East - even more so when those companies are ones we've had the pleasure to work with.

The awards are organised by Dynamo, the North East industry led initiative that focuses on the growth of the region's IT sector.

Made up of IT organisations and employers supported by technology hubs, educational institutions, local government offices and employer support initiatives, Dynamo provide a focal point for regional IT growth. It promotes our region externally, developing skills and education whilst supporting regional research and development.

Huge congratulations to Atom and Hive, as well as to all of the other winners on the night.

Start to raise investment for your company today Atom awards image courtesy of @AtomBank

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.