The Financial Conduct Authority (FCA) classifies these investments as high-risk due to the potential for losses. Take a few minutes to understand the level of risks associated with these investments.
If you have further questions, feel free to reach out to us via email or phone at +44 208 126 3612.
Key Risks:
Investors face the risk of losing all their invested capital if the business they invest in fails, which is common among start-up ventures.
Coverage from the Financial Services Compensation Scheme (FSCS) or the Financial Ombudsman Service (FOS) does not extend to poor investment performance. These schemes do not cover losses resulting from investment decisions. You can verify your investment protection status with the FSCS investment protection checker and learn more about FOS protection on their respective websites.
Even if the business succeeds, it may take several years to recoup your investment, as early sale opportunities are rare. The primary means of recovering funds is through acquisition by another company or going public, but such events are infrequent for start-ups. Dividends from start-ups are also uncommon, making it challenging to retrieve your investment quickly.
Putting all your funds into one business or investment category poses significant risks. Diversifying your investments reduces reliance on the success of any single entity. It’s advisable to limit high-risk investments to no more than 10% of your portfolio. Visit the FCA’s website for more information on investment diversification.
As businesses issue more shares, your ownership percentage decreases, potentially diminishing the value of your investment. Additional rounds of share issuance, often with added rights like fixed dividends, can further reduce investment returns. Explore methods of safeguarding your interests on the FCA’s website.
Access to detailed investment information on this website is restricted to eligible investors as defined by the Financial Conduct Authority (FCA) under COBS 3.5, COBS 4.12.6R, 4.12.7R, and 4.12.8R.
The content of this page has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000. Reliance on this promotion for the purposes of engaging in any investment activity may expose an individual to significant risk of losing all of the property or other assets involved.
This website is exempt from the general restriction in section 21 of the Financial Services and Markets Act 2000 on the communication of invitations or inducements to engage in investment activity on the ground that it is made to ‘investment professionals’ within the meaning of Article 19 of the Financial Services and Markets Act (Financial Promotion) Order 2005 (FinProm); persons believed on reasonable grounds to be ‘certified high net worth individuals’ within the meaning of Article 48 FinProm; persons who are ‘certified sophisticated investors’ within the meaning of Article 50 FinProm; and persons who are ‘self-certified sophisticated investors’ within the meaning of Article 50A FinProm. The attention of prospective Investors is drawn to the “RISK FACTORS” page of this website.
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