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: 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.

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 or via the following URL link: https://www.fscs.org.uk/check/investment-protection-checker/.

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.

At a glance

Current status: Open
Fund type: SEIS/EIS
Investment goal: Capital growth
Focus: Early-stage, multi-sector
Target returns: 1.72x
Target holding period: 6 years
Minimum subscription: £10,000

Key Information

The Fund is an opportunity to invest alongside Nova Cofoundery Limited ("Nova") in their portfolio of early-stage companies. The Fund, therefore, seeks to benefit from co-investing with experienced partners.

Investment Strategy

The Fund invests in ideas stage and early stage startups, without any capital investment from the founder. Nova's programme will take the founder from an initial idea to discovering its market and building the product. Nova mentors, explores, validates & scales founders and their ideas.

The Fund seeks to offer investors a diversified exposure of a minimum of ten investee companies each of which is engaged in solving industry problems with the use of a digital solution. It is envisaged that each subscription will be deployed across each investee company on a diversified basis, at the discretion of Nova Growth Capital Limited and Sapphire.

Nova seeks to leverage appropriate technology to source and mentor potential founders. This gives Nova the capability to perform real “in-person” due diligence on their entrepreneurs before it co-invests, it allows Nova to understand and model the performance funnel and gives Nova control of deal flow. Nova typically sees over 25 opportunities per investment that are made.

SEIS & EIS tax incentives

The companies the fund invest in are expected to be SEIS-EIS-qualifying, which makes Nova Cofoundery SEIS & EIS Fund SEIS-EIS suitable for qualifying clients who would potentially benefit from the following tax reliefs:

Up to 30% income tax relief (50% for SEIS)
Tax-free investment growth
Capital gains deferral (or 50% capital gains tax exemption for SEIS)
Inheritance tax relief
Loss relief

Please note: SEIS-EIS tax reliefs are only made available to investors because of the higher risks associated with investing in early-stage companies. Also, the availability of tax reliefs will depend on the investor's individual circumstances, and may be subject to change in the future. In addition, the availability of any tax relief depends on the investee companies maintaining their qualifying status.

Fund team

Andy Davidson View bio
Olivia Greenberg LinkedIn
Alistair Marsden LinkedIn
Jason Rogers LinkedIn
Bronagh Duggan View bio

Example companies from the current fund portfolio

The Aquarate co-founding team created a suite of sensor-based products which digitise existing NHS processes and increase the quality of patient care. Aquarate is working with leading hospitals across the UK, including the Liverpool Royal.

View website

Vidivet is made up of qualified vets and nurses that can be contacted any time through the VidiVet app on your phone or tablet. When their members have a question or a concern about their pet's health, Vidivet are there to answer any question no matter how big or small it is about them. They are independent, there is no bias. If a customer’s pet needs hand on assessment they have no issue directing them to their local vets. If it can be monitored at home, then Vidivet support them with that.

View website

Umii is a university-based connections app, helping students to make friends at university. Whether they are a new student wanting to connect with people ahead of term time or just looking to expand their circle, Umii connects students at university based on their course, societies and interests

View website

Bolda’s mission is to help the furniture and homeware industry save time and money, currently spent collecting and analysing market data. We strive to help you make better decisions and create unique insights in the new era of retail.

View website

THRIFT lets you know what any item is worth on the resale market - quickly and simply see which marketplace has the demand for your item, & it's profit potential. Reselling stuff should be made easier and more transparent. Their Mission is to improve economic opportunity for the masses, whilst encouraging sustainability and driving the circular economy with our technology.

View website

Welbee's online system helps senior leaders in schools, colleges and MATs improve and maintain staff wellbeing, delivering the outcomes you need.

View website

Next Slide

Important information

To invest, you must be an eligible investor. To be an eligible investor, you must be qualifying as one or more of the following:

• You meet the FCA’s definition of a professional investor (as per COBS 3.5).

• You meet the FCA’s definition of a certified high net worth investor (as per COBS 4 Annex 2R).

• You meet the FCA’s definition of a certified sophisticated investor (as per COBS 4 Annex 3R).

• You meet the FCA’s definition of a self-certified sophisticated investor (as per COBS 4 Annex 4R).

• You meet the FCA’s definition of a certified restricted investor (as per COBS 4 Annex 5R).

• You are a client of an FCA authorised firm that will provide advice on the suitability of the product in question.

Risk warning

THIS INVESTMENT IS NOT SUITABLE FOR ALL INVESTORS AS THE UNDERLYING INVESTMENTS ARE ILLIQUID.

This financial promotion has been approved by Sapphire Capital Partners LLP (FRN: 565716) on 01 May 2023.

Important information for private investors – Reliance on the information provided here to engage in any investment activity may expose an individual to a significant risk of losing all of the property or other assets invested. Your attention is drawn to the risk section contained within the Information Memorandum. Investments are typically in unquoted shares in small companies, the value of which can be volatile and are often difficult to sell. Nothing on this website constitutes investment, tax, financial, legal, regulatory, or other advice by Sapphire Capital Partners LLP.

The value of an investment may go down as well as up, and you may not get back the full amount invested, and you may therefore lose some or all of your investment.

If you are unsure of the suitability of any investment for your circumstances, please contact your independent financial advisor or other professional advisor authorised under the Financial Services and Markets Act 2000 (FSMA) who specialises in advising on investments of this type. Tax reliefs depend on individual circumstances. There is no guarantee however that the tax reliefs (such as SEIS and/or EIS reliefs, CGT reliefs or IHT relief) will be available on any investment made or that if it is initially available, it will not be subsequently withdrawn. Any references to tax laws or rates are based on current legislation, all of which are subject to change and are provided as a guide only. Prospective investors are advised to obtain their own investment and taxation advice and should consult their own professional advisors on the implications of investing.

Investments made in investee companies via funds managed by Sapphire Capital Partners LLP may not 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

Past performance is not a guide to future returns. CAPITAL AT RISK.

Nova Cofoundery SEIS & EIS Fund

Investing in early-stage pre-revenue companies.

At a glance

Key Information

Investment Strategy

SEIS & EIS tax incentives

Fund team

Example companies from the current fund portfolio

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Important information

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