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.
Portfolio News
Harvey Hall
· 2 min read
· Updated on

CoreHaus to invest in North East Manufacturing Site

Innovative housing manufacturer and GCV portfolio company CoreHaus has plans to make a considerable investment in the North East in the form of a brand new manufacturing site which could create dozens of skilled jobs for the region.

The recent appointment of project director Scott Bibby has signalled the start of the company’s search for a suitable, County Durham based factory unit to begin production.

Here the manufacturing of unique, modular Corehaus homes will take place following the recent success of trials throughout the region at sites such as North East HouseBuilder Homes by Carlton’s Cathedral Gates development in County Durham.

 

Creation of North East Jobs

Previously a production manager of 4 years at Hitachi Rail, Scott will first look to recruit a select core team before establishing further commercial partnerships in a push to encourage increased sales of the new product.

Recruitment is currently underway for a new production manager and engineer at CoreHaus as the company looks to extend its employment push – with a further dozen, technicians, apprentices and admin staff expected to be recruited within the first 12 months of operation.

The GCV portfolio company’s long term plan will see the production of 1,000 modular homes every year  for 5 years by which point over 100 people will be employed across the business – signalling positive impacts for regional house builders and the North-East job market alike.

CoreHaus was founded in 2014 by Carlton and Co Group – the parent company of regional housebuilder Homes by Carlton, and North-West based housing procurement specialists Fusion 21 in a joint-venture deal.  Here the businesses combined their extensive expertise and impressive track record to create a modern and versatile house building product.

Scott Bibby said: “We already know there is interest and demand for our innovative product. The housing sector is screaming out for something that’s both affordable and incorporates high-quality design within a modular frame.”

“The concept was successfully piloted with Homes by Carlton at their Cathedral Gates Site in County Durham and we are now looking to work together on other new housing developments across the region.”

“We’re also talking to housing associations about the product. Several have already told us they love the flexible, high-quality nature of the product. It is quick to build, easy to adapt and has a low-carbon footprint.”

 

Innovative Product and Design

Though CoreHaus homes can from the outset appear similar to traditional builds, they contrast to both typical brick built homes and other modular house structures due to the way they are designed and assembled. CoreHaus is part modular, but has a standard, engineered core that provides a balanced combination of flexibility and structure, easily configured to meet customer requirements.

Scott added “Even before the pandemic and the current economic downturn it was well-known that there’s a huge shortage of high quality, and affordable homes in the UK. There is a massive void in the market for something like CoreHaus.”

“Our light gauge steel-frame system ensures that CoreHaus can be used in both urban and rural locations with elevation treatments tailored to suit each setting, providing almost unlimited design potential. The standardised modular core means the house can be configured to provide either 2, 3 or four bedroom homes.”

Because of the nature of its production, the manufacturing methodology required for CoreHaus will differ from that most housebuilding. This more intricate process means technicians that possess relevant qualifications and problem solving skills in technical environments will be essential.

Scott added: “Our production and designs draw on technical skills and innovation. We will be looking to recruit people from different industries to create a diverse workforce with a growth mindset. We need engineering skills and construction experience combined to succeed and have a real opportunity to break the current mould.”

 

GCV continues to support CoreHaus after two successful funding rounds in 2016 and 2018 that resulted in a raise of over £450,000 from GCV’s private investor network (G-Ventures).

By utlising the valuable tax efficiencies offered by EIS and SEIS investment schemes, investors can look to maximise potential returns on future opportunities advertised on the GCV coinvestment platform and the G-Ventures private investor network.
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.