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.

Portfolio News

Atom Bank completes £367m mortgage-backed securitisation

GCV portfolio company Atom Bank has announced the completion of its fourth residential mortgage backed securitisation (RMBS) - ‘Elvet Mortgages 2021-1’ - spelling further positive signs for the team’s accelerated growth plan. Little over a year on from the bank’s third RMBS, completed in July 2020, the move marks a significant step in Atom’s mission to fuel additional, sustainable long term growth, in part through the expansion of its growing suite of financial products.   The £367m transaction, which was part offered/part retained, was issued earlier last month on the 15th October and was 1.6x oversubscribed - signalling Atom’s highest ever issuance - with Class A notes (fully offered) priced at SONIA +37 bps.
David McCarthy, Chief Finance Officer at Atom Bank, commented: “We’re delighted to have completed our fourth residential mortgage-backed securitisation. Securitisation will continue to be one of the ways we deliver efficient funding for our business, contributing to our overall model of keeping costs low and passing value back to our customers. "Alongside our ongoing trading successes in mortgages and business lending, this transaction is fuelling a sustained period of growth and profitability for Atom.”
Following a 2021 in which the digital-first bank has already announced major milestones including recording its first monthly operating profit and hitting £3bn in mortgage lending, the update comes as welcome news for us and our private investor network at GCV who wish the bank all the very best throughout their continued growth.
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.