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/EIS
Investment goal: Capital growth
Focus: Robotics, AI, Automation
Target returns: 3x
Target holding period: 6 years
Minimum subscription: £10,000

Key Information

The British Robotics Start-up Fund (the "Fund") seeks to back high-growth robotics, artificial intelligence and automation businesses, many of which will be involved in the energy transition as the world reduces its dependence on fossil fuels.

Automation and robotisation continue to drive significant productivity improvements across the global economy and the Fund offers investors an opportunity to participate in a mixed basket of some of the most innovative and disruptive businesses that are exploiting the new generation of robotic technologies.

The United Kingdom is home to some of the finest robot-engineering talent and the Fund looks to help convert this inherent potential into successful world-class companies.

The Fund offers investors the opportunity of investing in potentially fast-growing robotics companies in the UK whilst significantly reducing the inherent risks involved. It does this by both: focusing investment solely on robotics businesses where investors are eligible to take advantage of the SEIS or EIS schemes; and also by spreading the investments made across a range of companies and sectors so that investors can benefit from a portfolio approach.

SEIS & EIS tax incentives

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

Up to 50% income tax relief (30% for EIS)
Tax-free investment growth
Capital gains deferral (or 50% capital gains reinvestment relief for SEIS)
Inheritance tax relief
Loss relief

Please note: SEIS-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 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

Dominic Keen View bio
Ben McMeekin View bio

Example companies from the current fund portfolio

Muddy Machines enable growers to grow more, produce locally and ensure that the food we eat is fresher and more sustainable. The new category of field robots helps growers manage their labour-intensive crops by solving their biggest challenge - selective harvesting.

View website

A global-leading Machine Learning Digital Twin company. FlareBright models all types of unmanned aircraft to solve sensing, navigation, control and optimisation problems, allowing organisations to test and evaluate rapidly.

View website

Enabling organisations to achieve Net Zero through mitigation of greenhouse gas emissions. QLM (Quantum Light Metrology) Technology develops highly sensitive sensor technology to detect natural gas leaks using handheld devices, drones or satellites. The company is a spin-out from the University of Bristol.

View website

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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 01 May 2023.

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.

British Robotics Start-Up Fund

Investing in UK-based robotics, applied artificial intelligence and automation businesses.

At a glance

Key Information

SEIS & EIS tax incentives

Fund team

Example companies from the current fund portfolio

Want more information?

Book a consultation with one of our team

Explore other investments

Important information

Risk warning

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