Investment Risk Disclosure

Understanding Potential Risks

Welcome to PitchMatter. Investing in startups involves a high degree of risk, and it is important for our investors to understand and consider these risks before committing capital. This Investment Risk Disclosure provides essential information about the risks associated with startup investments made through our platform.

General Risks of Startup Investing

  • Loss of Investment

    Startups are inherently risky ventures, and investing in startups should be considered a high-risk activity. There is a significant possibility that you could lose your entire investment. Potential investors should only invest an amount that they are willing to lose without any change to their lifestyle.

  • Lack of Liquidity

    Investments in startups are often illiquid. Unlike publicly traded companies, you cannot easily sell your shares on a secondary market. It may take several years before a liquidity event occurs, such as a sale of the company or an initial public offering.

  • Rarity of Profits and Dividends

    Startups rarely pay dividends and their focus is typically on growth. Profits are generally reinvested into the company to fuel growth and build shareholder value. Financial returns may solely depend on a liquidity event.

  • Dilution

    Any investment in shares can be diluted over time if the company raises additional capital at a later date. Dilution affects all existing shareholders who do not buy more shares to maintain their shareholding percentage.

Specific Risks Related to PitchMatter Platform

  • Reliance on Information Provided

    The information about startups listed on PitchMatter is provided by the startups themselves. While we strive for accuracy and completeness of this information, we cannot guarantee it. Investors are responsible for conducting their own due diligence.

  • Regulatory and Tax Considerations

    Regulatory and tax environments are subject to change and can have significant effects on investment outcomes. It is advised to consult with a financial advisor, tax advisor, and/or legal counsel familiar with the details of startup investing.

Recommendations for Investors

  • Diversify Investments: To mitigate risks, it is advisable to diversify your investment portfolio across various sectors and stages of companies.
  • Understand Each Investment: Fully research every opportunity and understand all the specific risks associated with each investment.
  • Seek Professional Advice: Consider obtaining independent financial and legal advice to better understand the risks and legal implications of an investment.