Don’t invest unless you’re prepared to lose all your money. These are high-risk investments and you are unlikely to be protected if something goes wrong.
Risk summary for non-readily realisable securities which are shares:
Last updated: 19 October 2022
Estimated reading time: 2 minutes
Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.
What are the key risks?
1. You could lose all the money you invest.
If the business you invest in fails, you are likely to lose 100% of the money you invested. Most start-up businesses fail.
2. You are unlikely to be protected if something goes wrong.
The business offering this investment is not regulated by the FCA. Protection from the Financial Services Compensation Scheme (FSCS) only considers claims against failed regulated firms. Learn more about FSCS protection here. https://www.fscs.org.uk/what-we-cover/investments/
Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection here. https://www.financial-ombudsman.org.uk/consumers
3. You won’t get your money back quickly.
Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early.
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.
If you are investing in a start-up business, you should not expect to get your money back through dividends. Start-up businesses rarely pay these.
4. 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 anyone to do well.
A good rule of thumb is not to invest more than 10% of your money in high-risk investments. Read more about it here. https://www.fca.org.uk/investsmart/5-questions-ask-you-invest
5. The value of your investment can be reduced.
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.
Please find the PDF version here.
We’re finalists at the prestigious Growth Investor Awards ‘22
It’s been another hugely competitive field of entries for this year’s Growth Investor Awards, hosted by Intelligent Partnership. With the standard so high, it’s impressive to see Nova Growth Capital securing a spot as one of the finalists for not one, but two awards: ‘Best SEIS Investment Manager’ and ‘Industry Game Changer’.
Now in their eighth year, the Growth Investor Awards are a key event in the investment industry calendar. The awards celebrate the companies and individuals who go above and beyond to support the UK’s growing businesses, creating jobs, boosting economic growth, and supporting innovation.
About Best SEIS Investment Manager
The Best SEIS Investment Manager award celebrates outstanding investment managers specialising in Seed Enterprise Investment Schemes. The judges will be looking at the performance of your service from 6th April 2021, assessing your success across business performance, investment inflows, impact on the investee, adviser relations, customer feedback, and overall impact.
To get to the final itself is an achievement, but Nova Growth Capital will compete for the top award alongside three other impressive finalists:
- Haatch Ventures
- Symvan Capital
About Industry Game Changer
The Industry Game Changer sponsored by MICAP award celebrates any outstanding individual, company, product or platform provider that has demonstrably changed practice, perception or engagement in the tax-efficient investment industry.
To get to the final itself is an achievement, but Nova Growth Capital will compete for the top award alongside four other impressive finalists:
- Fund Her North
- Praetura Ventures
- The Ingenious Group
Commenting on the announcement, Alistair Marsden, Director of Nova Growth Capital said:
“To be up for one award is great, two awards – even better! I am pleased that the team has had the recognition they deserve for the hard work that they have put in. It is an honour to be in such great company as the other finalists. I’m looking forward to catching up over a drink at the awards ceremony!”
The Growth Investor Awards 2022
Reflecting how far the industry has come in recent years, the Growth Investor Awards are bigger than ever this year. With 28 categories, and more than 80 opportunities to win an accolade. The awards will be celebrated with a gala dinner at the prestigious London Hilton Park Lane, on the evening of November 24th.
Commenting on the Growth Investor Awards ’22, Guy Tolhurst, Managing Director of Intelligent Partnership, said:
“We’re always so impressed by the vital work our finalists do to support the fastest-growing UK SMEs and startups. That’s why we wanted to expand the Growth Investor Awards this year, ensuring that there is even more opportunity to get the recognition they deserve. Our categories are always competitive, but this year has exceeded all expectations. Nova Growth Capital deserves huge congratulations for even making it into the final of Best SEIS Investment Manager and Industry Game Changer, because I know how stiff the competition was.”
Award submissions will now move to a second round of judging from an independent panel of judges. All scores are collated to determine the winner and runners-up, with all finalists receiving tailored feedback and benchmarking reports offering expert insight about areas for improvement.
For further information, please visit growthinvestorawards.com