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Investing in a VCT Fund provides different risks to investing in an equity crowdfunding pitch. Please review the following risks before considering any investment into a VCT through FUNDH3R.

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Risks to bear in mind

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Your capital is at risk and you could lose money
The value of an investment in a VCT, and any income from it, can fall as well as rise. You may not get back the full amount you invest.

Investments in smaller companies can be volatile
A VCT invests in smaller companies that are not listed on the main market of the London Stock Exchange. Investments in smaller companies can fall or rise in value much more sharply than shares in larger, more established companies. They also have a higher rate of failure.

This is a long-term investment
You should be prepared to hold your shares for a minimum of five years. If you decide to sell your shares before then, you will be required to repay any upfront income tax relief you’ve claimed to HMRC.

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Your shares may be difficult to sell

There isn’t an active market for VCT shares in the way there is for most other listed companies’ shares. This means that if you decide to sell your VCT shares, it may take time to find a buyer, or you may have to accept a price lower than the NAV of the investment.

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The VCT’s qualifying status could end
There is no guarantee that a VCT will maintain its VCT status. If a VCT loses its qualifying status, tax advantages will be withdrawn from that point. Additionally, if a VCT loses its status within five years of your initial investment, you will be asked to repay any upfront income tax relief that you have already claimed.

Tax rules can change
The VCT tax benefits described on the pitch or on this website are correct at the time of going to print. However, rates of tax, tax benefits and tax allowances do change. Only UK tax payers can benefit from the tax reliefs offered by VCTs. In addition, the tax benefits available to you through this investment depend on your own personal circumstances. To ensure that VCT money continues to support government policy objectives, HM Treasury can also change the definition of a VCT-qualifying investment in the future. This could impact the nature of new investments that a VCT can make over time.

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Risk warning

Investing in start-ups and early-stage businesses involves risks, including illiquidity, lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. FUNDH3R is targeted exclusively at investors who are sufficiently sophisticated to understand these risks and make their own investment decisions. You will only be able to invest via FUNDH3R once you are registered as sufficiently sophisticated. Please click here to read the full Risk Warning.

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FUNDH3R is an Authorised Representative and is authorised and regulated by the Financial Conduct Authority (FCA) . This page has been approved by FUNDH3R. Pitches for investment are not offers to the public and investments can only be made by members of FUNDH3R.com. If this page contains details of historical performance, investors should be aware that past performance is not a reliable indicator of future results. Further restrictions and FUNDH3R's limitation of liability are set out in the Investor Terms and Conditions

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Please seek independent advice as required as FUNDH3R does not give investment or tax advice.