Oxford capital eis fund
Investor Portal

CPD CERTIFICATION

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Oxford Capital has created a CPD guide (accredited by the Chartered Institute for Securities & Investment) to help advisers better understand the strategy, process and risks of EIS investing. Two hours of structured CPD will be available to those who download the guide and complete the final online quiz.

Please complete your details below to download the guide and gain access to the quiz to claim your CPD points:

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awards

Best EIS Investment Manager – Finalist

Best Investor Return Winner 2022

Best Investment Platform Finalist 2022

Best Journalist or Advocate Finalist 2022

EISA Impact Award Finalist 2022

Best Investment Platform Finalist 2021

Exit of the Year Finalist 2021

eisa21 best eis funds

Spirit of EIS Finalist 2021

BVCA Excellence in ESG Category – Commended 2020

Exit of the Year One to Watch Finalist 2020

VC Investor of the Year Winner 2020

Best Angel Syndicate Winner 2018

Venture Capital House of the Year Winner 2013 and 2005

Best EIS Fund Manager 2013, 2012, 2010 & 2016

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.