Don’t invest unless you’re prepared to lose all the money you invest. These are high-risk investments and you are unlikely to be protected if something goes wrong.
Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.
Last updated: 01 July 2026
If the business you invest in fails, you are likely to lose 100% of the money you invested. Most start-up businesses fail.
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
or use this URL link:
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 this service from the following Financial Ombudsman Service Protection
or use this URL link:
www.financial-ombudsman.org.uk/consumers.
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.
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 at the FCA InvestSmart Guide
or use this URL link:
www.fca.org.uk/investsmart/5-questions-ask-you-invest
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.
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 website:
FCA InvestSmart
or use this URL link:
www.fca.org.uk/investsmart.
Please find the PDF version of the Risk Summary.
Fund Type EIS Venture Capital Funds Challenge Given the complexities of UK venture fund management and the obligation for an FCA‑authorised firm to oversee investments, Sustainable Ventures Investment Management Limited required a regulated investment manager. Partnering with Sapphire in t...
Sustainable Ventures is a UK climate-tech company that has focused on developing commercial solutions to address key sustainability challenges for more than ten years.
Sustainable Ventures works with over 1,000 startups and more than 54 portfolio companies, offering investment, workspaces, programmes, and business services. By focusing on these entrepreneurs, they learn about the climate-tech sector and its main areas.
In 2024, Sustainable Ventures embarked on launching two investment funds. Acknowledging the complexity of the UK venture capital regulatory environment, the team recognised the need for a proven, FCA-authorised investment manager. They needed a partner capable of navigating the SEIS/EIS fund management framework while providing the depth of regulatory and operational expertise required.
In 2025, Sustainable Ventures became an Appointed Representative (AR) of Sapphire, enabling it to operate under Sapphire's regulatory oversight. Sapphire assumed responsibility for managing the regulatory and compliance obligations, allowing Sustainable Ventures to focus on deal sourcing. This structure supported the successful dual launch of two investment vehicles, the Sustainable Ventures SEIS Impact Fund and the Sustainable Ventures EIS Impact Fund.
The decisive factor in selecting Sapphire as a partner was our extensive investment management experience and our specialist expertise in structuring SEIS/EIS funds. Our combination of FCA-authorised status, dedicated SEIS/EIS focus, and a proven fund management track record of more than 15 years made Sapphire the natural choice for Sustainable Ventures.
The dual launch of both Sustainable Ventures funds not only highlighted our capability to manage multiple complex fund launches in parallel but also evidenced our proficiency in implementing SEIS and EIS structures jointly.
“They enabled the simultaneous launch of both our SEIS and EIS funds and managed the entire process with regulatory expertise, clarity, and ease."
Stuart Ferguson, Sustainable Ventures Investment Partner.
The partnership and ongoing collaboration between Sapphire and Sustainable Ventures have led to the launch of both the Sustainable Ventures SEIS Impact Fund and the Sustainable Ventures EIS Impact Fund. These funds aim to support new companies developing commercial solutions to global sustainability challenges, with a sector focus on clean energy, energy efficiency, transportation, and more. Sectors that are crucial to addressing key sustainability and decarbonisation goals.
This collaboration demonstrates that, with dedicated teams and the right professional and industry experience, launching SEIS/EIS funds can be a highly efficient and well-managed process.
If you would like advice on how to set up an investment fund, such as a GP/LP fund or an EIS fund, or if you need an FCA authorised operator and manager to manage the fund, or need pricing and options, contact us, and we will be in touch right away.
Disclaimer:
Sapphire Capital Partners LLP ("Sapphire") is authorised and regulated by the Financial Conduct Authority (FRN 565716). The case study above is illustrative only and does not represent investment performance or future outcomes and the content on this webpage is intended solely to explain Sapphire’s fund-management and advisory services. It is not a financial promotion for the purposes of section 21 of the Financial Services and Markets Act 2000 and does not constitute investment advice, an offer, or an inducement to engage in any regulated investment activity. Nothing on this page should be interpreted as a recommendation regarding any investment, fund, scheme or structure. Any person considering an investment should obtain independent financial, legal and tax advice. Investments in start-ups, early-stage businesses and venture capital funds involve high risks, including the risk of losing all capital invested, illiquidity, and dilution. Tax treatments, including SEIS/EIS reliefs, depend on personal circumstances and may change. Communications with Sapphire’s staff are for general information only and should not be relied upon to make investment decisions.
A short, no-obligation conversation about whether launching a fund is the right route for you, and what it would take. We can cover structure, timescales, cost and regulatory requirements. Nothing to prepare in advance.
Boyd Carson co-founded Sapphire in 2009 and has since helped launch more than 50 UK venture funds. He is an Honorary Professor of Venture Capital, teaches on Harvard University's graduate venture capital course, and holds Sapphire's FCA compliance oversight role.
Schedule your free fund strategy consultation.