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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 unlisted early stage companies 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.
• 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.
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 unlisted early stage companies, you should not expect to get your money back through dividends. Unlisted early stage companies 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 any one to do well.
• A good rule of thumb is not to invest more than 10% of your money in high-risk investments.
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 unlisted early-stage companies 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.
Investment Strategy
Molten Ventures EIS’ objective is to deliver tax free capital growth from EIS qualifying venture capital investments. Find out more about our investment strategy below.
Key Information
Larger, later stage, investments
The target is that a majority of funds will be invested in later stage, growth investment rounds of £5-20m+ in companies intent on establishing revenues and building on strong growth momentum 1
Co-investment model
We focus on a scale of investments that is an order of magnitude larger than typical EIS funds, by co-investing alongside Molten Ventures plc and Molten Ventures VCT plc. 2
Exits
The later stage investment strategy with institutional calibre dealflow is intended to deliver a higher proportion of successful, profitable exits when compared with earlier stage funds. 3
One of Europe's leading VC fund managers
The fund manager, Encore Ventures LLP, is 100% owned within the group structure of Molten Ventures plc, which is considered to be one of Europe's leading venture capital firms.
Extensive team track record
Investment team members have combined decades of experience investing into high growth technology businesses.
Highly rated EIS funds
Molten Ventures EIS was rated 89/100 (the highest rated EIS) by Tax Efficient Review from 2015 until 2023 and is now rated on the second highest score of 88/100. It also held the highest EIS rating awarded by M J Hudson Allenbridge prior to their cessation of general availability reports. 4
- Subject to EIS qualifying criteria, and refined 'knowledge intensive company' criteria for Molten Ventures Approved KI EIS 24/25
- Conflicts could arise between the EIS funds, Molten Ventures plc, and Molten Ventures VCT plc with respect to differing investment strategies, deployment and realisation needs, and the contemplated manner and timing of potential exits.
- Investor returns vary from fund vintage to fund vintage. Investor participation depends on initial investment and redemption dates. Prospective Investors should note that past performance should not be seen as an indication of future performance.
- (subscription required): www.mjhudson-allenbridge.