Investing in early-stage and startup companies whether in equity or debt is risky and should only be undertaken as part of a diverse portfolio of investments.
Early-stage companies often have inadequate resources, unproven products and business models, little or no market penetration, little or no access to capital, limited management experience or skills, and a host of other impediments to success.
Investors at these stages typically are investing in the team, a early product demo, traction, or simply because they believe in it, not because of a proven business.
It’s likely that many of the companies listed on our site will fail and investors will lose their money. There is also a likelihood that while many may not fail, they may never have an exit, or have a return multiple that is equivalent to the risk.
There is also the chance that a highly successful company due to improper management, or even the economy, goes out of business.
Investing is not for the faint of heart and carries the inherent risk of losing everything.