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.
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 or via the URL link 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 or via the URL link https://www.fca.org.uk/investsmart.
Please find the PDF version here here.
Aquarate is preventing hydration-related illness through sensor based technology and products.
Startup opportunity
Poor fluid balance monitoring (the control of water levels within the body) is a problem that costs the NHS and private care facilities over a billion pounds per year within the UK. The current system is reliant on nurses verbally asking patients how much they’ve had to drink, or guesstimating this based on water displacement. Unsurprisingly this is highly inaccurate, time-consuming and has detrimental effects on patient care.
Aquarate founder Rebecca Taylor came to the team now at The Venture Studio having extensively researched this area for her final year University project. She knew that there was a better way to do this, and believed the solution could be achieved through sensor-based technology.
Since the fund’s investment and working with the team at The Venture Studio
- Validated concepts, designs and prototypes through industry user groups
- Design and production of tech hardware – Mug, Cup and Charging Tray
- Developed web app monitoring software for patients and carers
- Creation of brand, website & go to market strategy
- Secured trials in major UK hospital and care facilities
- Submitted patent and IP protection applications
“Startups can be a lonely venture, but with The Venture Studio as my co-founder I’ve had a passionate team engaging with me throughout the process. I’ve been able to take an idea surrounding a known problem and follow it through to a tested and validated solution”
Rebecca Taylor, founder of Aquarate
Investing in start-ups and early-stage companies involves risks, including illiquidity, lack of dividends, loss of investment and dilution. It should be done only as part of a diversified portfolio. There is no assurance that the investment objectives of any investment opportunity will be achieved or that the strategies and methods described herein will be successful. Past performance is not necessarily a guide to future performance and the value of an investment may go down as well as up.
The investments which we promote are targeted exclusively at investors who understand the risks of investing in early-stage businesses and can make their own investment decisions. Any pitches for investment are not offers to the public and investments can only be made through Sapphire Capital Partners LLP as the fund manager. Neither Built Venture Capital Limited, Sapphire Capital Partners LLP, nor any of their members, directors or employees provide any financial, legal or tax advice in relation to the investments, and investors are recommended to seek independent advice before committing or if they have any doubts as to the appropriateness or suitability of such an investment in relation to their specific circumstances.
Built Ventures is a trading name for Built Venture Capital Limited. Built Venture Capital Limited is a private limited company registered in England and Wales (Company Number 11591402). Built Venture Capital Limited (FRN 826519) is an Appointed Representative of Sapphire Capital Partners LLP (FRN: 565716), who is authorised and regulated by the Financial Conduct Authority.
Registered address: Built Ventures, 57 Jordan Street, Liverpool, Merseyside, England, L1 0BW
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