SFC Capital

About SFC Capital

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
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
Visit the FCA’s website to learn more about FSCS protection
The Financial Ombudsman Service (FOS) will not be able to consider complaints related to this firm
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
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
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
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