Key risks in more detail
- Loss of capital: most early-stage companies fail; you may lose everything you invest.
- Illiquidity: there is usually no market for these shares and an exit may never occur.
- Dilution: future fundraising can reduce your shareholding.
- Dividends: early-stage companies rarely pay dividends.
- Tax: reliefs depend on qualifying conditions, can be withdrawn and rules can change.
- Diversification: investments like these should form only a small part of a diversified portfolio.
Read more in our guide to EIS investment risks.
Last reviewed 2026-10-04. This page is a draft and should be reviewed by an appropriate legal/compliance adviser before publication.