Investment Risks

SEIS/EIS INVESTMENT RISKS

  • Investment in SEIS/EIS funds should be viewed as a higher risk/speculative investment.

  • Investors based outside the UK must satisfy themselves that such investment is compliant with or permitted by the laws of any relevant jurisdiction. Country or regulatory requirements may prevent certain investors/potential investors from being offered certain services or financial products and engage in business with certain entities of the Startup Funding Group. Investors based outside the UK must satisfy themselves that such investment is permitted by law or regulation in the relevant jurisdiction.  If there is any doubt, appropriate professional advice should be sought prior to making a commitment to invest.

  • The value of investments place capital at risk and may go down as well as up and an investor may not get back the full amount invested.

  • Investors’ interests are unsecured and rank subordinate to the interests of all creditors.

  • The companies in which the Fund invests are unlisted and will not be quoted on any regulated market.  Therefore, there will not be an established or ready market for any such shares resulting in a lack of liquidity making it to sell shares.  As a result, investors may receive less than the original amount invested.

  • Investment may be difficult to value and the risks assessed at any given time and the Manager may experience difficulty in realising the investments (for value or at all).

  • It is unlikely there will be any dividend income from any of the Fund(s)’s investee companies as start-ups rarely pay dividends.

  • Investments are likely to be subject to dilution, meaning investors’ percentages of portfolio companies will decline as portfolio companies issue new shares to raise further funds.

  • Many early-stage investments are recently formed and will have no substantive operating history upon which prospective investors can evaluate likely future prospects (although past performance should not be relied upon as an indicator of future performance).

  • The success of the investee company (and therefore the fund(s)) may be largely dependent on the ability of the directors to deliver against stated investment objectives.

 

ALTERNATIVE INVESTMENT FUND STRUCTURE

  • SFC’s Funds are not treated as unregulated collective investment schemes (as defined in section 235 of FSMA) but as alternative investment funds (‘AIFs’) as defined in the Alternative Investment Managers Directive 2011. The Fund Manager is SFC Capital Partners Ltd which is authorised and regulated by the Financial Conduct Authority in the United Kingdom with FRN number 736284 and whose registered office is  c/o Bennett Brooks & Co, Suite 34550, Eastcastle Street, London W1W 8EA. Investors appoint the Manager to invest their subscription monies on a discretionary basis into the investee companies held within the SEIS or EIS fund(s). Details of the investment objectives of the fund(s) can be found in the investment memoranda.

  • An investment in the Fund(s) may only be made on the basis of the Fund(s)’s Information Memorandum and the Investment Management agreement, which are available to eligible investors upon request.

  • Prospective investors should not view the Information Memorandum as a personal recommendation or advice relating to any legal, taxation, regulatory or investment matters and should consult an independent professional adviser prior to making any commitment to invest.

  • The Manager, its directors, officers, employees and agents do not accept any liability for any direct, indirect or consequential loss or damage suffered by any person as a result of relying on any information or opinions contained herein or in any other communication in connection with an investment in the Fund except where such liability arises under FSMA, regulations made under FSMA or the FCA’s Handbook of Rules and Guidance and may not be excluded.

  • Prospective investors should be aware that the arrangements described in the Information Memorandum represent a discretionary management service subject to the terms of the Investment Management Agreement.

  • All investments made will be held in the name of a nominee and in a way that enables each Investor’s entitlement to be separately identified.

 

TAX RELIEFS

  • The tax treatments of SEIS and EIS schemes depends on the individual circumstances of each investor and may be subject to change in the future.

  • The availability of any tax reliefs depends on the companies in which the Fund invests maintaining their qualifying status but are subject to change as they may be withdrawn at any time by HMRC.

  • Investors should consult a professional tax advisor to determine the tax position in their specific circumstances.

 

WEBSITE TERMS OF USE

  • The content of this website is intended for UK users or those in jurisdictions in which the use of this website is permitted in law or by regulation.  Persons who wish to access this website from other countries are required, by SFC, to inform themselves about and to observe any legal or regulatory restrictions which may apply.  Professional advice should be sought in case of doubt.

  • The content of this website should not be construed as an offer, or the solicitation of an offer, in any jurisdiction in which such offer or solicitation is unlawful.

  • The content of this website is for information purposes only and products are only sold with the related legal offering documents.

SFC Capital Partners

c/o Bennett Brooks & Co, Suite 34550, Eastcastle Street

London, W1W 8EA