Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Take 2 mins to learn more.
✕

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

• 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 to find out more.

• 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 any one to do well.

• A good rule of thumb is not to invest more than 10% of your money in high-risk investments.

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.

I understand
Log in
Register
  • Our fund
  • Our portfolio
  • About us

Investment guides and reports

Download our latest independently researched industry reports, investment guides, and the most recent updates on the performance of our fund, Access EIS. If you'd like to find out more about how EIS works, our dedicated EIS page has everything you need.

Access White Paper Power Law

White Paper - The science of startup investing, August 2022

Access Fund White Paper

White Paper - A data-driven approach to venture fund portfolio building, August 2019

Access Quarterly Highlights Cover Aug22

Access Quarterly Highlights, August 2022

Access Quarterly Highlights Cover

Access Quarterly Highlights, March 2022

getting the most out of esg guide cover

Getting the most out of ESG, an introduction for investors

understanding eis guide cover

Understanding EIS, a guide to tax efficient investing

celebrating our female founders

Celebrating our Female Founders

Top 100 guide cover

Top 100: Britain's Fastest-
Growing Businesses 2019

Beating the dragons guide cover

Beating the Dragons: How radical diversification can outperform VCs

The due diligence guide cover

The Due Diligence Guide for Investors

Tax efficient investing guide cover

Tax-Efficient Investing
in a Digital World

Earl stage equities guide cover

Early-Stage Equities A Long-Term Study

The art of fundraising guide cover

The Art of Fundraising
Entrepreneur Guide

Bridiging the equity divide report cover

Bridging the Equity Divide

Rise of the growth hunters report cover

**Rise of the Growth Hunters**

Top 100 companies 2018 cover

Top 100: Britain's Fastest-
Growing Businesses 2018

Investing in startups guide cover

Investing in Startups Guide

Top 100 companies 2017 cover

Top 100: Britain's Fastest-
Growing Businesses 2017

Get in touch

Want to discuss our publications, collaborate on research or share some feedback? We'd love to hear from you. Email [email protected] and we'll go from there.

/ guides and reports

Risk warning: Please click here to read the full risk warning.

Investing in early-stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. SyndicateRoom is targeted exclusively at sophisticated investors who understand these risks and make their own investment decisions. Tax relief depends on an individual’s circumstances and may change in the future. In addition, the availability of tax relief depends on the company invested in maintaining its qualifying status. Past performance is not a reliable indicator of future performance. You should not rely on any past performance as a guarantee of future investment performance.

This page has been approved as a financial promotion by Syndicate Room Ltd, which is authorised and regulated by the Financial Conduct Authority (No. 613021).

We use cookies to improve our service. By continuing to use this site you are agreeing to their use. Find out more.

Enter your email to receive our monthly newsletter covering our latest investments and projects, insights from investors and information about our data-driven model.

  • Investing

  • Invest in startups
  • EIS investing & tax relief
  • SEIS investing & tax relief
  • Alternative investments
  • Tax efficient investments
  • Inheritance tax
  • Useful links

  • Entrepreneurs
  • News & features
  • Guides & reports
  • FAQs
  • Angel Investors
  • About us

  • Contact us
  • Meet the team
  • Invest in Access EIS
  • Legal info & other

  • Sitemap
  • Terms of website use
  • Risk warning
  • Privacy statement
  • Terms & conditions
  • SyndicateRoom LinkedIn
  • SyndicateRoom Twitter
  • SyndicateRoom Facebook

Syndicate Room Ltd is registered in England and Wales. Number 07697935. Registered office: Wellington House, East Road, Cambridge, Cambridgeshire, CB1 1BH, United Kingdom

We use cookies to improve our service. By continuing to use this site you are agreeing to their use. Find out more