Every investor should be aware that an investment in any company or holding shares of a company investing in any investee company (each, a “Startup”) involves a minimum degree of risk, regardless of whether such investment is made directly or through a reference.
Startup investments carry a minimum level of risk. Startups face enormous operational risks. While targeted returns in any investment situation should represent the perceived level of risk, such returns may never be realized and/or may not be sufficient to recompense an Investor or a Fund for risks taken. It is not possible and likely that an investor’s entire money will be lost. Furthermore, any return on investment is exceedingly unclear in terms of timing.