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.

• 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 any one to do well.

• A good rule of thumb is not to invest more than 10% of your money in high-risk investments.

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.

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

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 any one to do well.

• A good rule of thumb is not to invest more than 10% of your money in high-risk investments.

5. The value of your investment can be reduced

If you are interested in learning more about how to protect yourself, visit the FCA’s website here.

Will autonomous vehicles deliver your groceries in the future?

Archived article

Archived article: please remember tax and investment rules and circumstances can change over time. This article reflects our views at the time of publication.

Many repetitive tasks could be automated in the future and the delivery of your weekly grocery shopping might just be an example, along with your daily commute.

Autonomous vehicles (AVs) are among the technologies that could make this a reality.

Oxbotica, a company backed by Parkwalk Opportunities EIS Fund since September 2018, is in the vanguard of this movement: in May 2022 it reportedly completed Europe’s first deployment of a zero-occupancy fully autonomous vehicle on publicly accessible roads. Strategic partnerships with Ocado and BP, investing double-digit millions, have helped the business test and develop its AV software.

Today, Oxbotica is one of the leaders in its field. In January 2023, it raised $140 million from a host of renowned investors, including Aioi Nissay Dowa, BGF, IP Group's Kiko Ventures and Tencent.

Find out more about the technology and why the Parkwalk Opportunities EIS Fund backed the business, below.

Important: The information on this website is for experienced investors. It is not advice, research, nor a personal recommendation to invest. If you’re unsure, please seek advice. EIS investments are high risk and you could lose the money you invest.

What makes Oxbotica different from other AV technologies?

The company was founded in 2014 at Oxford University by two professors, Paul Newman and Ingmar Posner. They were part of the Department of Engineering Science Mobile Robotics Group, where they developed RobotCar, the first autonomous vehicle on UK roads. This was the technology that led to the foundation of Oxbotica.

Oxbotica is focused on the development of AV software that does not rely on external systems such as GPS, unlike some competitors. Reliance on GPS poses a challenge for AVs, especially in densely populated areas where tall buildings can create an “urban canyon” that interferes with satellite signals.

Instead, Oxbotica’s AV technology operates on its own proprietary systems. The company believes its software platform will change the way people and goods move – enabling a cleaner, safer, more accessible future for every person and every community on the planet.

The technology is designed to have practical applications for multiple industries.

To highlight a few, Oxbotica already has the following partnerships:

Ocado Group for automated warehouse vehicles, last-mile delivery vehicles, and kerb-to-kitchen robots
ZF to deploy passenger shuttles operating 24/7 on fixed routes in major cities around the world
BP for automation in industrial domains including wind farms, solar farms, and refineries
Wenco for developing an Open Autonomy solution in the mining industry

Is it safe?

Oxbotica's technology has been tested in a wide array of vehicles. Its versatile software is said to perform reliably in the busiest cities and most complex environments, in rain and snow, at night and day — helping to keep both passengers and pedestrians safe.

Parkwalk invested in Oxbotica for five key reasons:

Parkwalk Advisors (Parkwalk) has been a long-term, active investor in Oxbotica. Parkwalk first met its founders in 2017 through its links with technology transfer office Oxford University Innovation (OUI). Parkwalk invested in Oxbotica for five main reasons:

The unique technology: Oxbotica operates on its own proprietary systems – invaluable in areas where GPS is unavailable or inaccurate and where other live systems have failed.
Multiple applications and markets: Oxbotica offers a scalable, modular software platform that can map, drive, detect obstacles and predict outcomes. It has applications across multiple sectors and terrains, including cloud-based fleet management in highly complex urban and industrial environments.
IP protection: Oxbotica’s proprietary technology is protected by 19 patents.
Commercial progress: Oxbotica’s illustrious list of non-financial investors and partners are giving it access to commercial opportunities in autonomous passenger fleets, agriculture, sustainable energy farms, light and heavy industries, logistics, as well as ports and airports.
Quality of leadership team: The leadership team at Oxbotica is exceptional, in Parkwalk’s view. Paul Newman, the founder, is BP Professor of Information Engineering at the University of Oxford and sits on the Prime Minister’s Council for Science and Technology. Gavin Jackson, CEO, has in-depth experience at Microsoft as MD for Commercial Enterprise EMEA and prior similar experience at Amazon’s AWS. Parkwalk is also impressed with Oxbotica’s management and board.

Oxbotica has created a unique offering in autonomy: the ability to drive off line with perception, in industries with applications that are commercially viable today and across multiple verticals.
Moray Wright, Chief Executive Officer, Parkwalk Advisors

Want to invest in companies similar to Oxbotica under EIS?

The Parkwalk Opportunities EIS Fund aims to invest in at least eight five early-stage cutting-edge technology companies. Manager Parkwalk is one of the UK's most active investors in university spinouts. Parkwalk has strong ties to the UK’s leading universities and manages funds in conjunction with the tech-transfer departments of the Universities of Cambridge, Oxford, Imperial College and Bristol. These partnerships could provide investors with unique access to the spinout sector.

To date, Parkwalk has invested in 163 companies and achieved 54 full and partial exits, 19 of which were profitable with exit multiples ranging from 1.1x to 16x, although past performance is not a guide to the future.

Performance of Parkwalk EIS funds per £100 invested in each tax year

Source: Parkwalk, as at 7 December 2022. Past performance is not a guide to future performance. The chart shows realised returns (where share proceeds have been returned to investors as cash) and unrealised returns (where cash has not yet been returned and the value of the investments is based on the manager’s own valuation methodology). There is no ready market for unlisted shares. The figures shown are net of all fees and do not include any income tax relief or loss relief.

Wealth Club aims to make it easier for experienced investors to find information on – and apply for – investments. You should base your investment decision on the offer documents and ensure you have read and fully understand them before investing. The information on this webpage is a marketing communication. It is not advice or a personal or research recommendation to buy any of the investments mentioned, nor does it include any opinion as to the present or future value or price of these investments. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination.

Parkwalk Opportunities EIS Fund

Learn more about the Parkwalk Opportunities EIS Fund – its manager, strategy, risks, what type of companies it invests in, the manager’s performance record, charges and our view.