Risk Warning

Last Updated: 19th November 2025


Investing in early-stage and unlisted companies can be very rewarding, but it carries high risks, including the potential loss of your entire investment.

The purpose of this Risk Warning is to ensure that you, as a potential investor, fully understand the significant risks involved before committing any funds. Spark Venture Funding ("Spark") is aimed solely at investors who are sufficiently sophisticated to understand these risks and make their own investment decisions.

By using this platform, you acknowledge and agree that you have read, understood, and accepted the following risks. If you do not understand any of the points below, you should seek advice from an Independent Financial Advisor, solicitor, or other qualified professional before proceeding. The following list is not exhaustive, and any decision to invest is made entirely at your own risk.

1. General Investment Risk & The Need for Diversification

  • High Risk of Total Loss: The majority of start-up and early-stage businesses fail. It is likely you could lose all, or a substantial part, of your investment. You should only invest money you are fully prepared to lose.
  • Essential Diversification: Diversification is a fundamental principle of prudent investing. It involves spreading your money across different investments and asset classes to reduce overall risk.
    • As a guide, you should not invest more than 10% of your liquid assets into any single company on this platform.
    • Investments made through Spark should represent only a portion of a broader, well-balanced investment portfolio that includes safer, more liquid assets.

2. Risks Specific to Equity Investments

  • Lack of Liquidity: Shares purchased through Spark are illiquid. There is no established market for these shares, and it is extremely difficult to sell them. You should not invest if you anticipate needing access to these funds in the short or medium term.
  • Rarity of Dividends: Companies at this stage typically reinvest all profits to fuel growth. You should not expect to receive any dividend income. A return on your investment is generally only possible through a future exit event, such as a trade sale or flotation, which may never occur.
  • Dilution: Your percentage ownership in a company may be reduced ("diluted") if the company issues more shares in the future. This can diminish your voting power, share of any future dividends, and the overall value of your holding, unless you invest additional capital in subsequent funding rounds.

3. Risks Related to the Companies

  • Limited Operating History: Many companies on our platform are newly formed and lack a trading history or audited accounts. You are investing based on future potential, not past performance.
  • Dependence on Management: The success of a company is heavily reliant on its management team's ability to execute its business plan. Spark does not accept responsibility for the actions or performance of a company's management after the fundraising campaign concludes.
  • Unreliable Forecasts: Any business plans, financial projections, or forecasts provided by companies are speculative and based on assumptions that may not prove to be correct. Actual results can differ materially from these projections.

4. Tax and Regulatory Risks

  • Loss of Tax Relief: Investments that qualify for tax relief schemes (such as EIIS) may lose that status due to the company's future activities or your personal circumstances. Any tax relief is not guaranteed and should not be the primary reason for your investment. You should consult a tax advisor.

5. Platform-Specific Risks

  • No Protection Schemes: Investments made through Spark Venture Funding are not covered by the Deposit Guarantee Scheme or the Investor Compensation Scheme. If a company fails or Spark ceases to operate, you have no recourse to these protective schemes.
  • No Advice or Recommendation: Spark approves investment pitches as financial promotions but does not provide investment advice, endorse any company, or make any recommendations regarding the suitability of an investment for you. You are solely responsible for your investment decisions.

Acknowledgment

By proceeding to use the Spark Venture Funding platform, you confirm that you understand these risks and that you are solely responsible for your investment choices. You should carefully consider whether this type of high-risk investment is suitable for you in light of your personal circumstances and financial resources.

If you are in any doubt about the action you should take, you should consult a person authorised under the Financial Services and Markets Act who specialises in advising on investments.