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: 15 April 2024 | 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

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.

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.

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.

Please find the PDF version here.

VCT Fund

About the VCT Fund

The Fuel Ventures funds are a prominent early-stage investor in technology in the UK, focusing on scalable companies across marketplaces, platforms and software (SaaS). Building on the track record of the EIS funds, comes the planned launch of the Fuel Ventures VCT to invest in a more diversified portfolio of tech-enabled businesses.

The VCT will focus on investing in top-performing portfolio companies, often co-investing with Fuel Ventures' existing EIS funds. The VCT will be able to invest in companies throughout the year rather than being focused on tax year end, whilst offering greater diversification than the existing EIS funds. 

Fuel Ventures Ltd is led by entrepreneur Mark Pearson who successfully exited several businesses including MyVoucherCodes and Paddle, a UK company now valued at $1.4bn. He is supported by a team of 23 people who have sourced, scaled and exited multiple businesses together.

(As at 29 November 2023)

Key Investment Criteria 

  • Exceptional entrepreneurs
  • Proven and growing revenues
  • Highly-scalable 
  • Capital efficient 
  • Multi-billion-pound market opportunities 

Key Information

  • Current status: Open
  • Fund type: VCT
  • Investment goal: Focused on Seed & Series A
  • Invests in: Marketplaces, Platforms, SaaS
  • Tax relief available: 30% income tax relief

The VCT Board

The Fuel Ventures VCT will have a very experienced board to oversee the investment manager, comprised of:

  • Andrew Whitehouse (Chair of the VCT, Ex-Chief Risk Officer on Board of esure, Treasurer Trustee of charity, KSAR);
  • Charles Elliott (Co-Founder and Fund Manager of Inflection Point Investments);
  • Marc Rubinstein (Ex-Fund Manager at Lansdowne, author of Net Interest);
  • Stuart Knight (Co-Founder of Titan Alternatives). 

Partnership with Titan Alternatives

This is the first time that Titan Alternatives, a sector specialist, has chosen to help originate and officially promote a new VCT. Having previously raised approximately £80 million into VCTs they bring significant experience and a high-calibre of investor support. 

(Titan Alternatives Limited (FRN: 974252) is acting as promoter of the Offer and is an Appointed Representative of Sturgeon Ventures LLP (FRN: 452811), which is authorised and regulated by the Financial Conduct Authority.)

Tax Benefits of VCT Investing

  • 30% Income Tax Relief - You can claim up to 30% upfront income tax relief on the amount you invest, given you keep your VCT shares for at least five years.
  • Tax-Free Dividends - If the VCT pays out dividends, there is no tax to pay, you won’t need to declare them on your tax return.
  • Tax-Free Capital Gains - If you sell your VCT shares and make a profit, the proceeds won’t be liable for capital gains tax. 

Fees and Charges - (Non-Advised Investors)

  • Full initial charge: 5.5%
  • Early bird discount: 3%
  • Existing investors & Titan Alternatives discount: 2.5%
  • Net initial charge for existing and Titan Alternatives investors: 0%
  • Annual management charge: 2%
  • Performance Fee: 0% (an industry first!)

An Offer for subscription in Fuel Ventures VCT plc (the “Offer”)

Titan Alternatives Limited (FRN: 974252) is acting as promoter of the Offer and is an Appointed Representative of Sturgeon Ventures LLP (FRN:452811), which is authorised and regulated by the Financial Conduct Authority. 

Any decision to invest in the Offer should only be made based on information contained in the prospectus and the Key Information Document (KID). The information provided in the Presentation, herein or on the website, does not constitute advice on investments, legal matters, or taxation. Prospective investors should consult with their own independent financial adviser before making an investment in a Venture Capital Trust (VCT).

Prospective investors should be aware that the Offer is a high-risk investment and they should not invest unless they are prepared to lose the entirety of their investment. In addition, the value of an investment can fluctuate and that they may not get back the full amount they invest. There is no certainty that the market price of the shares will fully reflect the underlying net asset value, that Shareholders will be able to realise their shareholding, or that any dividends will be paid. An investment in a VCT should be viewed as a higher risk, longer-term investment. Investors should be prepared to hold their investment for a minimum of five years in order to benefit from tax relief, with such requirements and benefit subject to future regulatory change.

Fuel Ventures VCT invests in early stage, unquoted companies whose shares can fall or rise in value more than other shares listed on the main market of the London Stock Exchange. The secondary market for VCT shares is generally illiquid and investors may find it takes longer to realise their investment. Tax reliefs available on VCT investments depend on individual circumstances and may change in the future. Tax reliefs also depend on the VCT obtaining and maintaining its VCT-qualifying status.

Past performance is not a reliable indicator of future results. Forecasts are not a reliable indicator of future performance and target values may deviate when different parameters apply.

Investors in the Offer will not be covered by the Financial Services Compensation Scheme (FSCS).