Last updated: 31 March 2023
Estimated reading time: 2 min
Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.
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 or via the following URL link: https://www.financial-ombudsman.org.uk/consumers.
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 or via the following URL link: https://www.fca.org.uk/investsmart/5-questions-ask-you-invest.
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 or via the following URL link: https://www.fca.org.uk/investsmart.
Please find the PDF version here.
WE AREN’T JUST A FINANCE SOLUTION, WE’RE A NETWORK OF FOUNDERS AND EXPERTS WHO APPRECIATE THE CHALLENGES OF ACCELERATING GROWTH.
The Velocity founders have all successfully built, scaled, and exited businesses.
Investee companies may beneﬁt from non-dilutive user acquisition funding via Velocity Juice to supercharge investor returns augmented by the Velocity founders’ experience in marketing.
Velocity is one of the UK’s leading VCs in B2C/D2C businesses.
Over £3m of the Velocity team’s wealth has been invested into Velocity underlying investee companies.
There are no upfront fees to investors (Performance-based).
Investor holdings can be viewed, valuations tracked, and the ability to download EIS3 certificates.
Velocity is proud that out of 46 companies the (S)EIS Funds have invested in, 44% have female founders and 36% have an ethnic minority.
THE VELOCITY MANAGEMENT TEAMS TRACK RECORD
WE ARE PROUD TO HAVE BUILTAN EXCEPTIONAL AND DIVERSE TEAM
Rajeev began his career in advertising and has worked for TBWA, Leo Burnett and HHCL. Formerly the Marketing Director of Red Bull Energy Drink, UK & Ireland, he completed an MBA at the Institute for Management Development (IMD) in Lausanne. He has since founded a series of successful entrepreneurial businesses across a range of industries. These include MPPI, an Indian media fund, raising money and managing Indian property ventures, a 200mw wind farm development near Istanbul and Soho House Mumbai, a franchise business launching the Soho House brand in Mumbai. Rajeev is a member of the Investment Committee.
Bil co-founded Beattie McGuiness Bungay (BMB), an advertising agency that went on to become one of the fastest growing agencies and considered one of the most creative advertising and marketing agencies of the decade. BMB went on to create nationally famous, highly effective campaigns for brands such as: McCain, Tui, Carling, and Virgin Money. His entrepreneurial spirit, combined with almost 30 years of creative and marketing experience, has helped him bring many ideas to fruition, for example Purple Bricks, and mentoring numerous early stage businesses. As deputy chairman of BMB, Bil maintains a strong connection with the agency he co-founded. Bil is a member of the Investment Committee.
Tom began his career as a corporate finance lawyer at Sidley Austin LLP, advising on debt and equity capital markets, mergers and acquisitions and private equity transactions, representing both financial institutions and corporates across an array of sectors. Tom left Sidley Austin to join Van Elle Limited as group managing director in March 2015, successfully steering the group through its AIM flotation in October 2016, by which time it was the largest, most profitable geotechnical engineering company in the UK. Tom is a member of the Investment Committee.
Kirsten started her career at Deloitte in Johannesburg, where she qualified as a CA(SA) chartered accountant. She moved to London where she joined boutique corporate finance firm Corbett Keeling, advising SMEs on M&A and fundraising. She has subsequently worked in an investment capacity at Nexus and Dream International. Kirsten joined the Velocity Capital team in 2021.
Richard has over 15 years of experience in the technology industry, working primarily within business to business software and professional services, and has held a number of senior roles at both blue-chip and boutique organisations. Following graduation with an MBA from Imperial College Business school in 2013, Richard became an early stage investor and Chief Operations Officer for Focus Group Europe Limited, which was a multi-award winning company, and which in 2016 was listed in the UK’s top 100 fastest growing technology companies. Richard successfully steered the company through a number of years of >100% year on year revenue growth and subsequently executed a company exit for the shareholders via a trade sale to Accenture.
Alex is an independent app developer and investor operating in the emerging message technology sector. He also serves on the board of the Duke of York’s ‘Pitch at Palace’ global innovation platform, Tim Berners-Lee’s ‘Web Foundation’, Singer Asia and Freuds – the UK’s leading communications agency, where he was a founding partner. Prior to his current roles, Alex was Executive Vice President of Omnicom – advising on digital strategies and managing their digital incubation initiatives. He was a senior communications adviser to PepsiCo, Inc. and managing partner of Fleming Media, a rights and media acquisition fund. Alex is a member of the Investment Committee.
Having studied Economics at the University of Exeter; Joe started his accounting career working in the Operational Finance teams at highly recognisable, consumer facing brands Moonpig and uSwitch. During his time at uSwitch, he was part of the team that successfully integrated Money.co.uk‘s reporting into the wider group post purchase. From here Joe made the move into Commercial Finance at Zoopla, where he was responsible for modelling the expected outturn for Zoopla and the Property Software Group, as well as business partnering with the directors of the separate sales channels.
Louisa started her career at Exact Financial Systems, a software house specialising in delivering a platform to alternative and tax efficient investment managers. As a business analyst at Exact, Louisa was responsible for implementing client systems and providing dedicated support. Louisa studied politics and international relations at the University of Kent and Bogazici University in Istanbul.
Ashley has a wealth of experience dealing with IFA’s, Family Offices, and HNWIs having worked in the tax-efficient space for over 7 years. Prior to starting at Velocity, Ashley worked at one of the UK’s leading tax-efficient investment platforms. As Head of Business Development at Velocity, Ashley focuses on the establishment and management of our intermediary relationships across the United Kingdom. Ashley is an ex-professional rugby player who represented London Wasps, London Welsh, Cornish Pirates, and now plays international Rugby 7s for Jamaica.
Kyle has over 10 years' experience within Financial Service and entered the world of Asset and Wealth Management as an Independent Financial Adviser (IFA) in Canada where he grew and later sold his profitable book of business before returning home to the UK. With lots of experience with HNW, IFA's and Family offices he went on to lead and build out the sales effort for a young start up, alternative property investment platform, before focusing in on the exciting space of Venture Capital. Outside of work Kyle plays hockey for Henley, helps operates a small family olympic weights business, and can often be found with his head in a good fiction novel.
Having studied Business Finance at Durham University, Hugo started his career as an entrepreneur by founding and exiting a tech start-up which manufactured and managed low carbon ebike fleets for the likes of Deliveroo and Pizza Hut. The company was acquired in 2017. Post acquisition, Hugo worked in venture capital backing high growth consumer brands and private equity acting as a consultant advising on strategic projects. Hugo joined Velocity in 2022 where he focusses on supporting later stage companies within the Fund.
Rahim has spent his career working in enterprise software development and consulting. He has engaged in projects for numerous blue chips and government department including BP, Accenture, HMRC, Lloyds TSB Registrars, FICORA (Finnish Government), Beazley and Royal Sun Alliance.
Rahim co-founded Damson Cloud over a decade ago, helping organisations such as Zoopla, Shazam and uSwitch transition their workloads to the Cloud. In his spare time, Rahim loves to immerse himself in all things Sci-Fi.
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© Copyright 2022 Velocity Capital Advisors Limited. All rights reserved.
Investing in start-ups and early-stage companies involves risks, including illiquidity, lack of dividends, loss of investment and dilution. It should be done only as part of a diversified portfolio. There is no assurance that the investment objectives of any investment opportunity will be achieved or that the strategies and methods described herein will be successful. Past performance is not necessarily a guide to future performance and the value of an investment may go down as well as up.
The investments are targeted exclusively at investors who understand the risks of investing in early-stage businesses and can make their own investment decisions. Any pitches for investment are not offers to the public and investments can only be made through Sapphire Capital Partners LLP as the fund manager. Neither Velocity Capital Advisors Limited, Sapphire Capital Partners LLP nor any of their members, directors or employees provide any financial, legal or tax advice in relation to the investments and investors are recommended to seek independent advice before committing or if they have any doubts as to the appropriateness or suitability of such an investment in relation to their specific circumstances.
Investments made in investee companies via alternative investment funds may be covered by the Financial Services Compensation Scheme (FSCS). For more details, please contact us or refer to their website: https://www.fscs.org.uk.