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 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

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
Investment goal: Capital growth
Focus: AI & Automation
Target returns: 5X
Target holding period: 10 years
Minimum subscription: £10,000

Key Information

The AI VentureFlows SEIS Fund is dedicated to investing in groundbreaking AI and automation start-ups, capitalising on the UK’s strength in artificial intelligence innovation and the increasing demand for AI-driven solutions. The Fund targets early-stage companies developing scalable technologies in machine learning, computer vision, generative AI, and automation, supporting them as they build transformative businesses with real-world applications. Its mission is to back ambitious AI start-ups, helping them accelerate growth and establish themselves as leaders in the next wave of technological advancement.

The Fund is led by a team with deep AI industry expertise and strong connections to the UK’s top AI incubators, research institutions, and innovation The Fund seeks to identify and invest in high-potential AI start-ups, helping them navigate early-stage challenges and position themselves for long-term success.

SEIS tax incentives

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

Up to 50% income tax relief
Tax-free investment growth
50% capital gains tax exemption
Loss relief

Please note: SEIS 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 Pardoe View Bio
Bruce Elliott-Smith LinkedIn
Andrew Irwin LinkedIn
Hugo Pinto LinkedIn
Ben McMeekin View bio

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 13 March 2025.

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) 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.

AI VentureFlows SEIS Fund

Investing in early-stage companies focusing on AI and automation.

At a glance

Key Information

SEIS tax incentives

Fund Team

Important information

Risk warning

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