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.
If you are interested in learning more about how to protect yourself, visit the FCA’s website here. https://www.fca.org.uk/investsmart
Please find the PDF version here.
Hy-genie is innovative hand hygiene improving patient safety and reducing healthcare associated infections.
Startup opportunity
Hand hygiene is a key component to preventing the spread of germs and bacteria in hospitals. Yet still over 300,000 patients suffer from health care associated infections each year in the UK. There have been many attempts to solve this issue at an operational level by adding more sanitation units throughout hospitals.
However with no effective measurement protocol in place, compliance is near impossible to track. Hospital staff receive limited training and guidance on the subject and unsurprisingly this leads to poor management. The current baseline in the NHS with independent validations is that less than 50% of staff actually wash their hands appropriately.
Hy-genie founder, Dr Richard Cooke, came to Nova as Director of Infection Prevention & Control at Alder Hey Children’s Hospital. He knew that if all hospital staff were
hand hygiene compliant MRSA would be eradicated from Hospitals. Hy-genie has the potential to save thousands of lives each year and the NHS an estimated £1.2bn in treatment costs annually.
Since our investment and working with Nova
- Validated concepts, designs and prototypes with medical professionals and NHS buying teams.
- Prototype creation of tech hardware – a smart staff ID badge, usage sensor and a centrally located base station.
- Developed the software to record staff usage of hand hygiene stations.
- Creation of brand, website & go to market strategy.
- Developed ‘Hy-genie Lite’ to rapidly deploy to hospitals during the Covid-19 pandemic.
- Secured trials in Alder Hey hospital.
Inside our portfolio businesses – Hy-genie
“I’m not from the startup world, I’m a medic at heart. I came to NOVA with the problem of hand-hygiene compliance in hospitals. They’ve helped me to find a solution, provided me with the technical team to build it and now are helping me to scale it into a successful, profitable business.”
Richard Cooke, founder of Hy-genie
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Please read our full risk warning and disclaimer: https://invest.novagrowthcapital.co.uk/risk
Investments of this nature carry risks to your capital. The risks include illiquidity where shares may not be able to be sold easily, lack of dividends and dilution. Past performance is not indicative of future returns. Investors should only invest a proportion of their available investment funds into Nova Cofoundery SEIS & EIS Fund as these investments are high risk.
The availability of any tax relief, including EIS and SEIS, depends on the individual circumstances of each investor and of the company concerned, is only available for UK investors in qualifying companies and may be subject to change in the future. If you are in any doubt about the availability of any tax reliefs, or the tax treatment of your investment, you should obtain independent tax advice before proceeding with your investment.
Nova Growth Capital Limited is a private limited company registered in England and Wales (Company Number 11591402). Nova Growth Capital Limited (FRN 826519) is an Appointed Representative of Sapphire Capital Partners LLP (FRN 565716), who are authorised and regulated by the Financial Conduct Authority.
FUND INVESTMENT FEES
5% initial fees and 2% annual fees paid by the Fund Investee Companies, resulting in 100% allocation of investment for tax reliefs with no additional fees. 20% performance fee only once on original investments that return over 150%.
Registered address: Nova Growth Capital, 57 Jordan Street, Liverpool, Merseyside, England, L1 0BW
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