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The Impact of the SVB Crisis on Early-Stage Companies 

In the heat of the moment  The recent collapse of Silicon Valley Bank (SVB) sent shock waves around the world and in particular the start-up ecosystem.  While the UK Government was quick to orchestrate the takeover of the UK arm by HSBC, the contagion spread …

EIS & VCTs – how do they differ, and which one is right for your portfolio? 

On the face of it, EIS (Enterprise Investment Scheme) and VCTs (Venture Capital Trusts) look to be similar opportunities. Both are high risk investments, investing in early-stage unquoted businesses, while providing investors with some attractive tax benefits that offer a tax efficient alternative to annual …

Backing Founders interview with Charles Brecque, Founder & CEO, Legislate

Featuring Founder & CEO Charles Brecque

Backing Founders interview with Owen McCormack, Co-Founder, HoxtonAi

Featuring Co-Founder & Executive Chairman Owen McCormack

Oxford Capital wins ‘Best Investor Return’ at the Growth Investor Awards

The 2022 Growth Investor Awards took place recently, with a gala dinner and awards ceremony to recognise the best of the growth investing community. The winners received their awards in front of 450 guests from across the alternative investments industry. This year’s awards were hosted …

Backing Founders interview with Charlie Bullock, Co-Founder & CEO, Scan.com

Featuring Co-Founder & CEO Charlie Bullock

A Year in Review – What will ‘backing founders’ mean in 2023?

By David Mott, Founder Partner, Oxford Capital  As we reflect on 2022, it’s been another year of challenges in the broader economy and within our own sector.  While many early-stage companies have continued to experience significant growth, valuations have been impacted and founders are facing …

With change comes opportunity – Autumn Statement

Following the Autumn Statement there were plenty of tax changes announced that will come into effect from April 2023. To identify opportunities for investors we have summarised some of the changes, and how EIS may offer potential solutions. The Change: The 45% tax rate from …

Backing Founders interview with Sam Hussain, Founder & CEO, Log my Care

Featuring Founder and CEO Sam Hussain

Are EIS a good investment?

Growth EIS Investments for beginners – learn everything you need to start as an investor What is EIS eligible? There are rules around EIS eligibility for both companies looking to raise capital, and investors looking to invest in EIS-qualifying companies.  For companies, they need to …

Backing Founders interview with Jeremy King, CEO & Founder, Attest

Featuring CEO & Founder Jeremy King

Meet the Oxford Capital team – Chris Payne, Investor

1. What’s a typical day like for you at Oxford Capital? This varies greatly depending on what day or week it is and what’s coming through the investment pipeline. Generally, we try to allocate a third of our time and effort to portfolio company management …

GROWTH EIS INVESTMENTS FOR BEGINNERS – LEARN EVERYTHING YOU NEED TO KNOW

Growth EIS investments for beginners – Learn everything you need to know

What are EIS Investments? Strictly speaking, there’s no such thing as an EIS investment. What you invest in are venture capital backed, early-stage unquoted company deals, and the shares you buy in these companies qualify for Enterprise Investment Scheme tax benefits. EIS was introduced by …

Government reinforces commitment to UK entrepreneurs

“We want this country to be an entrepreneurial, share-owning democracy. The Enterprise Investment Scheme and Venture Capital Trusts, we will extend beyond 2025. Crucial steps on the road to making this a nation of entrepreneurs.” Kwasi Kwateng, Chancellor of the Exchequer. Some welcome news for …

Lucia Gunn

Meet the Oxford Capital team – Lucia Gunn, Director, Finance & Operations

1. What’s a typical day like for you at Oxford Capital? Every day is different; there are annual events to manage such as financial and fund accounts, which are externally audited, budget setting with three year forecasts, policy reviews and of course planning the Christmas …

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Are EIS Investments Tax-Free?

EIS investments are high risk. You are investing in early-stage tech-focused businesses, and as such, you need to be comfortable with the level of risk and the lack of liquidity for approximately 5-7 years. However, for those that are comfortable with the risk, HMRC provides …

How to start Growth EIS Investments successfully

If you are considering making an EIS investment, it is important that you decide from an informed position. Below are some of the key considerations to take into account to kick start your EIS investing journey: How Does The EIS Work For Investors? In order …

Nick Sudlow 2 cropped2 cooler

Meet the Oxford Capital team – Nick Sudlow, Analyst, Investor Relations

1. What’s a typical day like for you at Oxford Capital? A typical day can be quite varied depending on what activities are taking place within the company, for example if we are closing a funding round, but my primary role is to be the …

what are the rules of eis investments scaled

What are the rules of EIS investments?

The Enterprise Investment Scheme (EIS) is designed to encourage private investment into growing British companies, by offering attractive tax reliefs. It is one of the UK Government’s flagship policies for supporting British enterprise, stimulating approximately £1bn of private investment each year. For anyone considering investing …

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SPOKE secures £5m for further international growth

Investing in team, technology and marketing across expanding international footprint Largest Seedrs crowdfunding campaign so far of 2022  Strong trading momentum across all markets US growing at over 100% pa SPOKE, the custom-made on demand menswear brand, announces the completion of a £5m crowd-funding round …

Backing Founders interview with Dr Karan Mehta, Co-Founder & CEO, Bluezone

Featuring Co-Founder & CEO Dr Karan Mehta

The Future of Fintech Why You Should Invest in Financial Technology scaled

The Future of Fintech: Why You Should Invest in Financial Technology

The growth of fintech companies and the technology these companies have developed has been significant in recent years.  It’s a sector which has played an important role in growing the UK economy and this month the CBI has unveiled a major new campaign to entice …

Backing Founders interview with Ben Farren, Founder & CEO, SPOKE

Featuring Founder and CEO Ben Farren

Oxford Capital

UKBAA Angel Investment Awards – Accelerator of the Year sponsor

The UKBAA Angel Investment Awards are returning on 7th July 2022 and we are delighted to be sponsoring the Accelerator of the Year award. The award will recognise the accelerator with the most dynamic and innovative programme of support for early stage founders. Nominations are …

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.