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: Closed
Fund type: EIS, Self-select Investment
Investment goal: Capital growth
Focus: UK SMEs, multi-sector
Target holding period: 5-7 years
Minimum subscription: £10,000

Key Information

Vala's self-select platform gives you control of how you allocate your investment funds, and lets you create a custom portfolio of companies. Invest just in one company or those in a specific sector – the choice is yours.

Investment philosophy

At the heart of Self-Select, EIS is a team of seasoned and successful venture builders. With decades of experience in the industry and international finance, they have created, built and sold many innovative businesses around the world.

This hard work, and the lessons learned along the way, put Vala in a strong position to select, support and help grow exciting companies, giving them the best possible chance of success. This experience has also shaped a set of values and beliefs that underpin Vala

Sector focus

Mentoring entrepreneurs through the lifecycle of their business is an important part of Vala's investment approach. The individuals who act as mentors may also put their own money into the portfolio companies and, in some cases, they may themselves be founders. Because of this, Vala often invests in companies operating in sectors that we know well, or where we can bring in exceptional sector expertise from our wider network.

These sectors may include technology, engineering, media and entertainment, fintech, lifestyle and wellness, and food and beverage

Development stage

The ‘early-stage’ companies the Fund invests in may be at different phases of their development. Some ‘pre-revenue’ companies need funding to cover the costs of launching products and services into their chosen markets. Others will be ‘post-revenue’, meaning they are already up and running, and need funding to accelerate their growth (for example, by investing in sales and marketing functions or expanding their product range).

EIS tax incentives

The companies the fund invest in are expected to be EIS-qualifying, which makes Vala Self-Select EIS suitable for qualifying clients who would potentially benefit from the following tax reliefs:

Up to 30% income tax relief
Tax-free investment growth
Capital gains deferral
Inheritance tax relief
Loss relief

Please note: 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 personal circumstances, and tax legislation can change in the future.

Fund team

Jasper Smith View bio
Dylan Jones LinkedIn
Jonathon Spanos LinkedIn
Boyd Carson View bio

The following companies are available now for investment.

Revving is a revolutionary fintech providing transformational cash flow management solutions for online trading businesses.

View website

Arksen is a technology and adventure company designing the ultimate marine exploration vessels.

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.

• You meet the FCA’s definition of a certified high net worth investor.

• You meet the FCA’s definition of a self-certified sophisticated investor.

• You meet the FCA’s definition of a self-certified restricted investor.

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

Risk warning

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.

Vala Self-Select EIS

Build your own EIS portfolio by selecting the Vala-backed companies you want to invest in.