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.
Key Team Members
Joanne Carter
Head of Finance
ACCA practice trained accountant with an executive MBA from Lancaster University. Over 20 years experience leading finance teams in private sector companies.
Jason Rogers
Chief Operating Officer
Jason, the Chief Operating Officer at Built Ventures, brings over two decades of invaluable experience in financial services. He previously played a key role in spinning out TruFin Plc from a prominent European-focused alternative asset manager with £3.5 billion in assets under management. Additionally, he was an integral part of the team that orchestrated the spin-out of another subsidiary company of TruFin. Within Built Ventures, Jason focuses on achieving operational excellence, streamlining processes, and structuring deals.
Alistair Marsden
Director
Alistair is responsible for the general strategic oversight of Built Ventures. He cut his teeth two decades ago, working as one of the first employees in a string of successful startups and UK HQs of internationally recognised firms. After completing an MBA with distinction, he later went on to set up his own consultancy, helping founders scale and exit.
Jessica Baker
Head of Investor Relations
Jessica is an accomplished individual within the alternative investment space. Starting her career at an Oxford-based VC, Jessica went on to work at an investment platform that manages relations with 50+ funds, supporting their fundraising activities and startups. She now heads up the Marketing and Investor Relations at Built Ventures. Jessica’s core focus remains developing relationships with investors and leading projects that will drive change across Built Ventures to benefit its clients.
Have any questions?
Give us a call, drop us an email or even visit us.
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).
Registered address: Built Ventures, 57 Jordan Street, Liverpool, Merseyside, England, L1 0BW
© BUILT VENTURES 2024