Oxford capital eis fund
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Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment. Take 2 mins to learn more.

Oxford Capital Named Best EIS Fund Manager

Top EISA award completes the hat trick for Oxford Capital.

Specialist investment manager Oxford Capital has been names the best eis fund manager, having won the EIS Sponsor/Fund Manager of the Year award at the EIS Association (EISA) Awards held at the House of Lords in London on 13 February 2013. Oxford Capital is the first manager to win the EISA award three times following its success in 2006 and 2010. The award was presented to David Mott, Oxford Capital’s Managing Partner.

The EISA Excellence Awards are decided by the Council of the EISA, who cast their votes for the candidates put forward by members.

David Mott, Managing Partner, Oxford Capital said:
“Winning this award for the third time is particularly pleasing because it is awarded by our peers in the industry. It recognises our commitment to deliver the highest possible standards of service, support our portfolio companies and deliver consistent performance to our investors.”

 

Estimated reading time: 2 min

 

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.