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

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.
CoreHaus logo
Portfolio News
Dan Smith
· 1 min read
· Updated on

GCV launches £2m investment round with modular housing manufacturer CoreHaus

Innovative modular housing manufacturer CoreHaus has launched its EIS-eligible investment opportunity with GCV as the company looks to scale operations, build on their traction to date and increase its £23 million client pipeline. 

Background

The winner of the 2022 Constructing Excellence Modern Methods of Construction Award, CoreHaus is re-inventing affordable housing delivery through its flexible hybridised construction process and innovative time, cost and energy-efficient approach.

CoreHaus has experienced strong traction since launch, having expanded its premises, more than doubled the team’s headcount and delivered a number of successful client developments throughout the North of England.

The market

The UK government increased their focus on modern methods of construction (MMC) in recent years as demand in the housing market has rapidly outstripped supply and vacancy rates have continued to remain below 1%.  

To ensure industry requirements align with CoreHaus’ proposition, the company’s product and process has been designed to address four key issues within the market:

  1. UK Housing Crisis - the UK is in desperate need of new homes. The rate of house building in the UK still needs to increase by 25% to meet the Government’s target to build 300,000 new homes per annum.

  2.  Skills Shortage - the traditional UK construction sector already faces an acute skills shortage, with the complexities of Brexit and a two year pandemic compounding the situation further. This reduced labour force is slowing the rate of construction growth.

  3. Build Quality - the quality of new build homes is under increasing scrutiny. One distinct advantage of modular housing is that the majority of the traditionally problematic work inside the house has already been undertaken during the off-site build phase in factory conditions with strict quality controls.

  4.  Sustainable Construction - pressure across the sector to identify more sustainable methods of construction is increasing with tightening environmental legislation. Offsite manufacturing allows housebuilders to monitor wastage under strict conditions and incorporate more environmentally-friendly materials and processes in a controlled environment. 

This EIS-eligible investment round

In this investment round, CoreHaus is looking to continue on its growth path: expanding the team, scaling operations and further increasing the company’s current £23 million pipeline.

With £1 million of investment already committed and in place from Fusion21, investors in this round have the opportunity to co-invest alongside both experienced, private investors and institutional investors.

This opportunity targets a 4.81x money-on-money return upon exit, and being EIS-eligible, offers investors the full range of tax reliefs associated with the wrapper (all tax reliefs are dependent on individual tax circumstances). 

To find out more about this opportunity or to download the Investment Memorandum, visit the CoreHaus investment opportunity page.
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.