- Question: What are the possible risks in making an investment?
Investing in start up and early stage unlisted companies carries a number of risks including lack of liquidity, lack of dividends, dilution, and possible loss of your entire investment. You should only invest what you can afford to lose, and investing in companies listed on the Fireflock platform should be done as part of a diversified portfolio of less risky and more liquid investments. If you are unsure, please seek advice from a professional advisor such as an accountant, stockbroker or suitably qualified IFA. You can view the full Risk Warning here.
- Question: Is there a minimum amount I can invest?
Yes. The minumum amount that you can invest in a single company on the Fireflock platform is £100.
- Question: Can anyone make an investment?
Before you are able to make an investment, you must first register on the Fireflock website. In order to be eligible to register and view pitches and make investment offers you will need to confirm that you are over 18, a UK resident and have a full understanding of the risks involved and are either:
- a High Net Worth Individual
- a Sophisticated Investor; or
- a Restricted Investor (someone who confirms that they will not invest more than 10% of their available funds in any 12 month period).
- Question: Can I invest in more than one company at the same time?
Yes. You can invest in as many companies as you wish. Remember however not to invest money that you cannot afford to lose, or money that you will require access to at short notice.
- Question: What happens if the company I invest in doesn’t reach its target?
If the company you invest in doesn’t reach its target, your funds will not be debited from your account.
- Question: What method of payment can I use to make my investment?
Fireflock currently offers you the ability to set up a Direct Debit function through Go Cardless. This is a simple online process, and you will need to provide your bank account number and sort code to activate your Go Cardless account when you make your first investment.
Alternatively you can choose to pay using a debit card linked to a UK bank account, or, if you are investing more than £5,000, you can complete the Fireflock form and settle off-line.
- Question: What type of companies will I be able to invest in?
Companies that pitch for funding on Fireflock are typically looking for seed funding, are early stage companies, or are more developed businesses looking for additional capital. Likewise, these businesses can operate in a variety of sectors. Fireflock aims to offer investors a wide choice.
- Question: How will I realise my investment?
Successful companies may seek an exit route which might include a trade sale or a listing on a recognised stock exchange. Both these situations can provide you with an opportunity to realise your initial investment.
- Question: Is Fireflock regulated by Financial Conduct Authority (FCA)?
FireFlock is an Appointed Representative of Sapia Partners LLP, a firm which is authorised and regulated by the Financial Conduct Authority. Investors do not become clients of FireFlock, but the businesses for which capital is raised do become clients. Investors therefore do not have access to the Financial Ombudsman. More information is in the Terms &Conditions.
- Question: What fees will you charge me to invest in a company on the Fireflock Platform?
None. Fireflock will not charge you any fees. This is unlike some other crowd funding platforms which will charge you as much as 7.5% of any profits that you may make on your investment.
- Question: Are there any tax advantages available to investors?
The shares offered by some companies may qualify for the Seed Enterprise Investment Scheme (SEIS) or the Enterprise Investment Scheme (EIS), which dependent on the investor's individual circumstances and the company's circumstances may offer a number of different tax reliefs. Please see our summary of SEIS and EIS.