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.
It’s been another hugely competitive field of entries for this year’s Growth Investor Awards. With the standard so high, it’s impressive to see Nova Growth Capital securing a spot as a finalist for not one but two awards: ‘Best SEIS Investment Manager’ and ‘Industry Game Changer’.
We have an upcoming deployment anticipated on the 5th of August. The deadline for applications and funds cleared is Thursday 30th June. Our regular and rapid fund deployments allow investors to quickly build a considerable and diversified portfolio of underlying investments.
Calling UK Financial Advisers – we are once again running our sponsored EISA annual adviser survey, to hear your opinions on SEIS. As a thank you for completing this survey, we will be randomly picking one winner who will receive a FREE course license for the new Intelligent Partnership EIS & SEIS Accreditation
We have an upcoming deployment we thought you might like to know about. Our regular and rapid fund deployments allow investors to quickly build a considerable and diversified portfolio of underlying investments.
Introducing the six latest startups that have joined our portfolio.
We have worked to find out what barriers were preventing independent UK financial advisers from recommending SEIS to their clients and have partnered with Intelligent Partnership to provide a complete SEIS & EIS course for advisers.
If you are an adviser that has dismissed Seed EIS out of hand as being too risky, we hope that you will think again. There are some very powerful reasons why SEIS investments should be on your financial planning agenda.
We wanted to share some important information with you about our limited capacity for this financial year.
What if you didn’t need to chase the .00006% of startups that become unicorns? What if, instead, you could achieve returns by playing into the centre of the 80% of EU exits? This is where the Seed Enterprise Investment Scheme (SEIS) can step up for investors.
2021 has been an amazing year for Nova Growth Capital. We would like to tell you about a few of the highlights, and why they may well be relevant to you.
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
© NOVA GROWTH CAPITAL 2023