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.

Weekly Briefing

Weekly Briefing: UK Unemployment Rises, AI Boosts Productivity, Small Firms Demand Tax Cuts, and Blackstone's UK Housing Push

This week's briefing highlights, significant productivity gains in AI-exposed sectors, demands by small firms for tax cuts and cost reductions, Blackstone's major investment in the UK's rental housing market and more.

UK Economy UK

Unemployment Surges, But Vacancies Fall

  • The UK's unemployment rate rose to 4.4% in the three months to April, marking the highest level in over two years, according to the Office for National Statistics (ONS).

  • Despite expectations for stability, the jobless rate increased, with vacancies falling by 12,000 to 904,000, marking the 23rd consecutive decline.

  • Throughout this period salary earnings growth has remained strong at 6%, outpacing inflation, which fell to 2.3%, the lowest since 2021.

  • The ONS noted, “This month’s figures continue to show signs that the labour market may be cooling, with the number of vacancies still falling and unemployment rising, though earnings growth remains relatively strong.”

  • Jake Finney, an economist at PwC UK, highlighted the challenge for the Bank of England, stating, “A broad set of indicators suggests that the labour market is cooling but pay growth has not fallen to the extent they would like to see.”

  • More timely data from HM Revenue & Customs showed a slight decline in payroll employment, further indicating a cooling job market.

UK Business

AI Implementation See’s Productivity boost

  • UK Sectors heavily exposed to AI have experienced productivity growth nearly five times higher than less exposed sectors, according to a PwC report.

  • In the UK, job postings requiring AI skills are growing 3.6 times faster than average, with employers offering a 14% wage premium for these roles, proving the major benefit companies are seeing from AI implementation.

  • The legal and information technology sectors have seen the highest wage premiums, reflecting the high demand for AI skills in these industries. 

  • PwC’s 2024 global AI jobs barometer indicates that AI adoption has been driving significant job market changes for over a decade, with AI job postings increasing sevenfold since 2012.

  • Barret Kupelian, chief economist at PwC UK, noted, “AI has the power to create new industries, transform the jobs market, and potentially push up productivity growth rates.”

Small Businesses Call for Tax Cuts and Employment Cost Reductions

  • The Federation of Small Businesses (FSB) has urged political leaders to provide reassurances on tax and employment costs to win the support of small business owners.

  • Research from FSB indicates that 90% of small business owners are concerned about potential tax increases, while 92% worry about rising employment costs under the next government.

  • The FSB has launched a manifesto calling for a Small Business Act, aiming to protect small firms and foster their growth through new legislation.

  • Key proposals include enshrining measures to combat late payment practices, improving access to finance, and setting a 33% SME statutory public procurement target.

  • The manifesto also advocates for reforms to business rates, maintaining current tax reliefs for self-employed and small business directors, and reintroducing universal work experience in secondary schools.

  • Tina McKenzie, FSB’s Policy Chair, emphasised, “Small businesses are the key to securing economic recovery, driving innovation, and creating jobs in all parts of the UK.”

UK Property

Blackstone's Major UK Investment

  • Blackstone has agreed to purchase 1,750 homes from Vistry in a £580 million deal, reflecting growing opportunities in the UK’s underserved rental market.

  • This deal, combined with a previous transaction, brings Blackstone’s total investment with Vistry to £1.4 billion, funding over 4,500 homes.

  • The UK rental sector relies heavily on small private landlords, but institutional investors like Blackstone are increasingly entering the market, reflecting the clear opportunity in Britain's property market.

  • James Seppala, head of European real estate at Blackstone, stated, “Institutional private capital can play an important role in providing high-quality housing stock across the UK, particularly in the private rented sector, which is significantly undersupplied today”.

  • These properties will be managed by Leaf Living, a company established by Blackstone and Regis to manage single-family homes for rent in the UK.

  • Vistry’s strategy to focus on partnerships for building affordable housing has helped it navigate the housing market downturn, with plans to increase new home completions by 10% this year.

Final Note

It is fair to say that the past week has proven a period of varied emphasis across the UK business and property landscapes in particular, from Blackstone’s UK property pursuit to the transformative impact of AI on productivity in the UK. 

Small businesses have voiced their concerns ahead of political shifts, seeking assurances for a more favourable business environment. 

Meanwhile, Blackstone's substantial investment in UK housing underscores the growing interest and potential in not only the rental market but the entire property market.

While not without room for improvement, these developments point the UK investment and economic landscape in a positive direction as we progress into the second half of 2024, with many opportunities for growth and innovation for business owners and investors alike.

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.