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

HIVE. HR secure £1.15 million investment

Growth Capital Ventures (GCV) Portfolio company HIVE. HR have recently received further investment by a GCV led co-investment opportunity. 

Newcastle based HIVE. HR initially started working with GCV in 2016 when the company received support from GCV’s venture builder arm, G-Labs in addition to accessing funding from GCV’s private investor network, G-Ventures.

HIVE. HR is a Software as a Service (SaaS) business that helps organisations to improve employee engagement levels, communication and recognition in their workforce on an ongoing basis through a mix of industry leading technology and tailored paid support in the form of coaching, training and facilitation.

Having raised an initial £300,000 through GCV’s online investment platform during it’s seed round in 2016, the company was then able to launch their platform, onboard 80 new customers and win several contracts (including the likes of TARMAC, Brewdog and Travelodge) against other indirect solutions, including Glasgow Clyde College.

Following the success of the initial seed round, HIVE. HR then targeted an additional raise of £300,000 in a Super Seed Round through GCV in June 2018. With an overwhelming amount of interest, the opportunity overfunded and reached a total raise of £1.15 million with investment coming from the GCV investor network and funds managed by Maven Capital Partners (one of the UK’s leading private equity firms).

The funding has enabled HIVE. HR to boost sales and marketing activities as well as create a number of new roles to deliver on its ambitious expansion plans. 

John Ryder, CEO of HIVE Said: 

GCV’s investment team have surpassed our expectations, providing strategic and corporate finance support to raise three rounds of funding, totalling circa £3.0 million to date. Working directly with G-Labs, GCV’s in house venture builder team, HIVE has been provided with post investment support shaping and implementing our Growth Strategy that ultimately has led to the customers we now serve including RiverIsland, BrewDog and Travelodge to name a few.

Going from strength to strength, in addition to now boasting an impressive client list across a number of private and public sectors, earlier this year HIVE. HR was a finalist in the Tyneside and Northumberland Business Awards. Now employing over 40 members of staff, the company are making great head way in employee engagement space and are looking forward to further expansion in 2020.

Craig Peterson, Co-founder and Chief Operating Officer at GCV said:

GCV are delighted to be working with John and his team. HIVE is making a real difference in the employee engagement space. Cutting edge technology combined with people science is helping some of the UK’s most progressive companies change working lives for the better. HIVE is scaling fast with a team of 40 highly motivated people and annual recurring revenues are growing at over 100% year on year. The business has huge potential to become a leading player in the employee engagement space.

More information on HIVE. HR can be found at their website

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.