Oxford capital eis fund
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David Mott

Founder Partner
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David co-founded Oxford Capital with a passion for backing founders and building bridges between entrepreneurs and private capital investors. David chairs the Management Committee and leads the firm’s Investment Management team. During a career of over 20 years as an investment manager, he has played an active role in the venture capital sector and for four years served as Chair of the BVCA Venture Capital Committee to promote innovation and best practice in the UK’s venture capital sector and supporting the UK’s thriving enterprise economy. He is a member of YPO, the Young Presidents Organization, London chapter. David has also advised the UK government and the European Commission on investment policy.

Prior to establishing Oxford Capital, David lived and worked in Europe and Asia, working with Result Ventures, PricewaterhouseCoopers, Deloitte and Jardine Fleming. He speaks French, German and Japanese, and is learning Italian. David has a BA in Economics and Japanese from the University of Durham and completed the Private Equity leadership development programme at Harvard Business School. David is a collector of contemporary art and often tests himself with endurance adventures in the Arctic.

 

 

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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
    1. 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
    1. Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker here.
    2. 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.
  3. You won’t get your money back quickly
    1. 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.
    2. 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.
    3. 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
    1. 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 any one to do well.
    2. A good rule of thumb is not to invest more than 10% of your money in high-risk investments. https://www.fca.org.uk/investsmart/5-questions-ask-you-invest
  5. The value of your investment can be reduced
    1. 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.
    2. 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.