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

Now Live: Fame Media Tech’s SEIS-Eligible Investment Opportunity

After we provided a glimpse into Fame Media Tech just before Christmas, I’m delighted to announce their SEIS-eligible investment opportunity is now live on the GrowthFunders platform and open for investment.

Led by co-founder and CEO Bryan Hoare, Fame Media Tech’s focus is clear – through the use of technology innovation, they are providing a Software as a service (SaaS) solution that completely transforms the fan, visitor and customer experience for organisations and industries around the world.

Experiences in need of transformation

Gartner have suggested we are now in a time where customer experience is set to be the key brand differentiator, overtaking both price and product – yet only 10% of organisations would consider themselves as being ‘very advanced’ in how they deliver customer and visitor experiences.

There’s a wealth of reasons why 90% of organisations don’t rank their approach to such experiences as highly, but it can very often be seen as boiling down to one – there is simply not the technology solutions available or readily accessible to allow for it to be delivered in such a way.

We can attend theme parks and download an app to see where the longest queues are. We can visit museums and download a map of exhibits to our phone. We can be part of a football supporters club and receive regular video insights into the history of the club.

But these experiences are limited. They’re fragmented and rigid. They’re often doing little more than meeting the most basic of existing expectations from the customer.

What Fame Media Tech has set out to do is create, a highly customisable platform which when combined with storytelling and innovation in digital media will influence customer behaviour, enhance engagement, and improve loyalty.

Think virtual reality. Think augmented reality. Think content experiences that go far beyond what many organisations believe is actually possible. The reality here is such experiences are far from impossible – we’ve seen considerable developments of experienced-based technology in recent years, but no stand out application of its combined use in a way that benefits user and operator (fan and football club, for example) alike.

Through these experiences, brands can positively influence behaviour, drive customer engagement and build brand loyalty better than ever before.

Fame Media Tech are changing how customers experience and engage with brands. Industries of all varieties have suffered tremendously as a result of Covid-19, but many have been able to pivot and reach their audiences in different ways, albeit if unsustainable and only temporary. Others – such as hospitality and sports – have been unable to pivot in any real capacity, and it’s in instances like this where it becomes apparent the need for building and maintaining relationships with customers digitally, both on and off site – in a way that’s immersive and innovative – is greater than it ever has been.

Investing in this SEIS-eligible investment opportunity

Now live on the GrowthFunders platform, Fame Media Tech is open to investors looking to invest into early stage UK technology startups. As with all investments, completing due diligence is imperative and you can access the full investment memorandum here. Furthermore, being an early stage startup company, this investment should be considered a high risk, high return opportunity and your capital is at risk.

Being SEIS-eligible, investors are able to access a number of associated tax reliefs, most notably up to 50% income tax relief on the value of their investment. This means a £1,000 investment could cost, in real money terms, £500, though it’s vital you take the appropriate professional advice to ensure your individual eligibility for this tax relief.

A company set to make tremendous strides in the customer experience space, you can find out full details of Fame Media Tech’s current investment round here.

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.