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.
At Nova Growth Capital (Nova) we are committed to protecting and respecting your privacy. This policy outlines details of the information that we collect, store and process, and the measures we take to protect and safeguard this information.
Who are we?
Nova is committed to protecting and respecting your privacy, and we’ll only use your personal information to administer your account and to provide the products and services you requested from us. From time to time, we would like to contact you about our products and services, as well as other content that may be of interest to you. Our processing basis for this communication is Consent, which you will be requested for at the time you submit the form:
Information you provide through the website
If you fill in our contact form, you provide us with some details:
First Name (required)
Last Name (required)
Email address (required)
Your email address will be used to contact you to directly answer your general enquiry. Our processing basis for this communication is consent, which you will be requested for at the time you submit the form.
If you fill in our mentorship & investment form, you provide us with some details:
First Name (required)
Last Name (required)
Email address (required)
Phone number (required)
What stage is your startup (required)
Tech Category (required)
Explain your startup idea including the problem it solves, the opportunity you would like to explore and how you think technology will be used (required)
Will your startup be building a Hardware or Software product? (required)
How did you hear about us? (required)
Your email address will be used to contact you (by Nova only) about our Startup Programme or to respond directly to your general enquiry. Our processing basis for this communication is consent, which you will be requested for at the time you submit the form.
How long do we hold data for?
Nova only retain data for as long as it is strictly required. This means data that you provide through the general contact form is held for no more than 24 months. After this time all stored data will be removed from our live systems in accordance with our data policy.
Nova only retain data for as long as it is strictly required. This means data that you provided through the Mentorship & Investment forms will be held for as long as you want to be contacted about our startup programme. If you opt out of communications your data will be held for 12 months and then deleted in accordance with our data policy.
Who has access to your data?
We won’t share or sell your information or allow the use of your information for marketing from third parties, however we may share relevant information with our suppliers to help us deliver our services to you.
Nova will not sell or rent your information to third parties, and we do not share information for marketing purposes with any third parties. Nova may share data with 3rd party suppliers working on our behalf – this includes contractors, agents and other subcontractor who work for Nova to provide services and complete tasks for the delivery of our service. Where such a relationship is in place there are contractual safeguards in place to protect your information. Nova will only share data that is relevant to the tasks being completed and to the delivery of service to you, and where possible the data will be anonymised. None of these organisations and individuals are permitted to use the data for any other purpose.
At any time you will be free to remove consent by contacting us at email@example.com
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How do we support your rights?
We will not contact you for marketing purposes by email unless you have given your prior consent. You can change your marketing preferences at any time by contacting us by email: firstname.lastname@example.org
The accuracy of your information is important to us. If you change email address, or any of the other information we hold is inaccurate or out of date, please email us at email@example.com
You have the right to ask for a copy of the information Nova Growth Capital holds about you. We will provide any information free of charge, please email firstname.lastname@example.org with a copy of a valid ID (passport or driving license).
Right to remove consent
Where we rely upon your consent to perform data processing we allow you to revoke the previously granted consent by contacting us at email@example.com whereupon we will comply with your request.
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Review of Policy
We regularly review our policies – the last review of this policy was undertaken in June 2020.
We can be reached with any inquiries by either email or phone:
Phone: +44 (0)151 317 4250
Nova Growth Capital Ltd
57 Jordan Street, Liverpool, Merseyside, England, L1 0BW
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