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

Watch Now: Bryan Hoare Discussing Fame Media Tech and their Considerable Market Opportunity

A few short weeks ago, we had the pleasure of interviewing Bryan Hoare and hearing first-hand about Fame Media Tech. Currently live on the GrowthFunders investment platform with their SEIS-eligible investment opportunity, Bryan took the opportunity to provide an insightful overview of Fame Media Tech.

Transforming the fan, visitor and customer experience through the use of innovative technology and immersive experiences, Fame Media Tech was founded in 2018 and since their inception, they have worked intently on developing their solutions based on clear market needs – when you explore exactly how even some of the biggest brands in the world are engaging with their audiences, it becomes instantly visible just how much of a demand there is for the industry to be transformed.

The Market Opportunity

One of the most notable points surrounding Fame Media Tech is the market opportunity in front of them. As audiences – customers, fans or visitors – that continually engage with brands in a whole variety of different ways, our needs and expectations are changing. The way we view a brand differs to how it did just a few short years ago and that’s directly impacting on our levels of loyalty. 

Bryan highlights this perfectly in the webinar, saying:

“Customers are no longer basing their loyalty on price and product alone. They’re staying loyal to companies because of the experience that they actually receive. That is resulting in companies now having to revisit their customer engagement strategies and starting to look at new ways in which they can create programmes which generate that loyalty and improve loyalty through experiences.”

Additionally, Covid-19 has showcased the change in market needs clearly – and in many ways, has expedited its rate of change. When we have limited possibilities to engage with a brand in person, we don’t expect for the brands to ignore us – we expect them to reach us in other ways, most notably digitally.

Touching on this in the webinar, Bryan explains:

“There was another survey recently by Vanson Bourne. The survey respondents said that 77% of their digital experience brands have changed since the start of the pandemic. It just goes to show that customers are starting to look at it right now.”

As we mentioned in our previous blog post, solutions exist that utilise technology to improve our digital experience with brands. When you attend a theme park there’ll very often be a dedicated app now so you can see wait times for rides. Similarly, a lot of museums have apps that allow you to download maps with information on the exhibits. 

And although this may be a considerable improvement on where we were in the immediate past, these experiences are only scratching the surface of what’s possible.

They’re not innovative or immersive; they’re not groundbreaking or offering anything truly transformative – offering something that makes you believe the brand is truly engaging with you as an individual and which genuinely enhances your experience with them.

As Bryan discusses in the webinar, this is exactly what Fame Media Tech are providing – innovative and immersive solutions that completely transform the fan, visitor and customer experience.

Fame Media Tech’s SEIS-Eligible Investment Opportunity

Live on the GrowthFunders platform raising £150,000 to further their technology development and strengthen their team, for investors focused on tax efficient investments, it could prove to be an appealing consideration.

Being SEIS-eligible, any investments into Fame Media Tech’s current round can be eligible for 50% income tax relief. This effectively means an investment of £1,000 would cost an investor, after tax reliefs are accounted for, £500.

As with all such investments, it’s imperative due diligence is carried out sufficiently as your capital is at risk and returns aren’t guaranteed, but you can view the full investment details – and download the Investment Memorandum – via the Fame Media Tech pitch page.

In addition, you can read more on investing into opportunities that are SEIS-eligible in our guide to the Seed Enterprise Investment Scheme (SEIS), which covers everything from the associated tax reliefs through to the risk/return balance.

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.