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.

Risk summary for non-readily realisable securities which are shares:

Last updated: 15 April 2024 | 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

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.

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

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.

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.

Please find the PDF version here.

Follow-On EIS Fund

The Fuel Ventures Follow-On EIS Fund seeks to target the 5-8 of the best performing companies in the Fuel Ventures funds' portfolio who need additional capital to accelerate their already proven growth.

About the Follow-On EIS Fund

The Fuel Ventures Follow-On EIS Fund makes follow-on investments in existing portfolio companies. It seeks to target the 5-8 of the best performing companies in the Fuel Ventures funds' portfolio who need additional capital to accelerate their already proven growth.

A follow-on investment decision from the Fuel Ventures EIS Fund goes through a decision-making process, which includes approval by Fuel Ventures experienced Advisory Committee and Investment Committee, as well as the fund manager.

By bringing portfolio companies into our co-working space, we have a good understanding of which of the companies are fast growing and could benefit most from follow-on investment. This means we can deploy the fund in a short period of time, giving EIS investors the ability to carry-back their tax relief to the previous tax year.

Fees and Charges - (Non-Advised Investors)

Initial charge - 2.5% (payable by Investee Companies)
Annual management charge - 2% (payable by Investee Companies)
Performance fee: 20%

VAT will be added to all fees and charges where applicable.

Please ensure you read the Key Information Document (KID) and the Information Memorandum for full details of the fees. Prospective investors are advised to obtain their own investment and taxation advice and should consult their own professional advisors on the implications of investing.

Key Information

Current status: Open
Fund type: EIS
Investment goal: Growth
Invests in: Marketplaces, platforms, SaaS
Portfolio size: 5-8 companies
Target returns: 5x (but not guaranteed)
Target time to full investment: Full investment within the 25/26 tax year
Tax relief available: EIS (income tax relief, capital gains tax relief, loss relief)

Register Interest

Download KID

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Fuel Ventures Funds' Portfolio

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