Understanding the Risks of EIS

EIS investments are classified as high-risk investments.

You may lose some or all of your capital.

Capital Risk

Early-stage companies have a higher failure rate than established businesses. Invested capital is not protected.

Illiquidity

  • No established secondary market

  • Minimum 3-year holding period

  • Exits depend on sale, IPO, or acquisition

Investors should expect a long-term commitment.

Business and Operational Risk

Startups may face:

  • Funding shortfalls

  • Competitive pressure

  • Regulatory changes

  • Operational execution risk

Valuation Risk

Private companies are not publicly traded, making valuations more subjective.

Tax Relief Risk

Tax relief depends on:

  • Company maintaining qualifying status

  • Investor eligibility

  • HMRC approval

If EIS status is withdrawn, tax relief may be clawed back.

Diversification Risk

Investing in a single company increases exposure to concentrated risk.

Diversification may reduce, but not remove, risk.

2026 ©EIS Investment. All rights reserved.

Regulatory and Risk Disclosure

EIS investments are high risk. Capital is at risk and you may lose some or all of your investment. Tax reliefs depend on individual circumstances and may change. These investments are long-term and illiquid. Independent financial advice is recommended.

EIS investments are not covered by the Financial Services Compensation Scheme in relation to investment performance.

The information contained on this website is provided for general information purposes only and does not constitute investment advice, a recommendation, an offer, or a solicitation to buy or sell any investment or to engage in any investment activity.

EIS Investment is not authorised or regulated by the Financial Conduct Authority (FCA) unless expressly stated otherwise. Any investment opportunities referenced on this website may only be available to eligible or sophisticated investors and may be subject to restrictions under applicable law.

No reliance should be placed on the information contained on this website for the purposes of making an investment decision. Past performance is not a reliable indicator of future results. The value of investments and any income generated may go down as well as up, and investors may not receive back the amount originally invested.

Prospective investors should seek independent legal, financial, and tax advice before making any investment decision.

EIS Investment does not accept liability for any loss or damage arising from the use of, or reliance on, the information contained on this website, to the fullest extent permitted by law.

Jurisdiction
This website is directed only at persons located in the United Kingdom. The information provided is not intended for distribution to, or use by, any person or entity in any jurisdiction where such distribution or use would be contrary to local law or regulation.

Privacy & Cookies
Please refer to our Privacy Policy and Cookie Policy for information on how we collect, use, and protect your personal data.

Governing Law
These terms are governed by and construed in accordance with the laws of England and Wales.

Important Compliance Information

The information on this website is provided for informational purposes only and does not constitute investment advice, a financial promotion, or an offer to invest in any specific product or structure. Investments in EIS Investment may only be available to eligible investors and may be subject to restrictions.

Past performance is not a reliable indicator of future results. The value of investments and the income derived from them may go down as well as up, and investors may not get back the full amount invested. Prospective investors should seek independent legal, tax, and financial advice before making any investment decision.