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.

Imperial College now outranks Oxbridge – how to back its most promising spinouts

Imperial College London has just outstripped the Universities of Oxford and Cambridge in the QS World University Rankings – a prestigious league table of the world’s leading universities. After years of vying with Oxbridge, Imperial is now the highest-ranked university in the UK and Europe – bested worldwide only by MIT in the US.

Among the reasons for its ranking is Imperial’s world-leading research performance.

What’s more, Imperial is building a strong track record translating that research into startup companies that drive innovation.

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

A proud history of successful spinouts and startups

Imperial College London was among the first UK universities to launch its own dedicated technology transfer office in 1986 – Imperial College Innovations (ICI) – to help identify and support promising inventions and discoveries that might be commercialised successfully.

ICI has helped spin out hundreds of startups across sectors such as healthcare, renewable energy, decarbonisation, clean water and nutrition – areas of particular strength at Imperial. In the last five years alone, Imperial startups have attracted nearly £500 million in external capital and helped create over 1,300 new jobs.

How might you invest in promising startups spun out from Imperial?

Spinouts from Imperial College are the sole investment focus of the Imperial College Enterprise Fund – a collaboration between Imperial College and specialist spinout investor Parkwalk Advisors. The EIS fund launched in 2020 and has since raised £3.5 million across its first two funds, investing £2.5 million in nine companies. The third iteration is now open – it will close on 28 June.

The fund invests in companies founded by Imperial students, staff and alumni – innovative startups the manager deems could have great commercial potential. Previous examples include Charco Neurotech, whose wearable devices help improve symptoms of Parkinson’s disease, and OSSTEC, whose 3D-printed knee implant technology mimics natural bone structure, for more successful grafting.

Wealth Club is the only non-advised broker to offer the Imperial College Enterprise Fund III.

Investors should receive a portfolio of at least five EIS-qualifying early-stage, high-growth, research-intensive – and consequently high-risk – companies. EIS tax relief could help partly mitigate the significant risks. Tax rules can change and benefits depend on circumstances.

Please be aware of the imminent deadline: the Imperial College Enterprise Fund III closes on Friday 28 June 2024. The minimum investment is £25,000 and you can apply online.

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.

Imperial College Enterprise Fund III

Learn more about Imperial College Enterprise Fund III – its manager, strategy, risks, what type of companies it invests in, the manager’s performance record, charges and our view.