Disclaimers
Potential for Complete Loss of Capital: Investments in startup businesses are inherently risky. There is a high probability of losing all the money you invest, as a significant number of startups fail. The due diligence performed on these businesses may be limited. It is crucial that you conduct your own research and understand the risks before investing through any platform. Liquidity Concerns: Recovering your investment typically takes several years, even if the startup succeeds. The most common exit strategies include acquisition by another company or an IPO on an exchange, both of which are infrequent occurrences. Dividends are rare in startups, and thus, should not be relied upon as a form of return. While secondary markets like OpenStreet' may offer early selling opportunities, there is no guarantee of finding a buyer or achieving your desired sale price. Diversification Is Key: Concentrating all your funds in a single startup or investment type is highly risky. Diversifying your investments can reduce dependence on any single entity's performance. A prudent strategy is to limit your exposure to high-risk investments to no more than 10% of your total capital. Dilution and Rights Issues: If the startup issues more shares, your ownership percentage may decrease, potentially diluting the value of your investment unless the company's growth offsets this dilution. New shares may carry additional rights that your shares do not, such as priority dividends, which could further diminish your potential returns.
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