Capital loss
A company may fail, miss its plan, or become insolvent. You should invest only an amount you can afford to lose.
Investor education
Understanding investment risk
Private-company and early-stage investments can produce returns, but they can also result in the loss of some or all invested capital.
Limited liquidity
Private shares are not normally traded on a public exchange. You may be unable to sell when you want to, or at all.
Dilution and valuation
Later funding rounds can reduce your ownership percentage. Campaign valuations are not a guarantee of future value.
Forecast and execution risk
Business plans, forecasts, milestones, and founder statements may not be achieved as presented.
- Review campaign-specific risks
- Assess the team, market and use of funds
- Diversify where appropriate
- Seek independent legal, tax or financial advice