Early Stage & Project Venture Investment Risk
Updated: May 6, 2018
Here's 10 endangerments to keep in mind if you want to invest your money successfully!
Investor discontent definitely is noticeable, spurred by marked volatile capital and commodities markets on a global scale. And, it seems, with startups as well. The January 2016 edition of Vanity Fairarticle titled “Start-Up Investors Want Their Money Back as They Watch It Burn,” bluntly cited failed fintech startup Clinkle and the recent Bitcoin debacle for driving angel and VC investors to the point of raking back their cash and equity investments from risky ventures. While the unicorn clubin general is on point with startups turning the entrepreneurial dream into reality into industry shift, investors need to give full attention to the inherent risks in investing in ventures that are in the infancy stage in both concept and in actual inception.
Investment in an early stage venture involves a high degree of risk. ‘Early stage ventures’ for our definition pertains but is not limited to startups, exploratory mining, and large scale real estate projects with no prior blueprint to copy or imitate. Prospective investors should carefully consider risks in evaluating investments and only those who can accept the risk of substantial loss should participate. No guarantee or representation can really hold water that any company or project will achieve investment objectives or that an investor will receive full return of capital. In evaluating whether to make an investment, especially in early stage companies and projects with stand-alone risks, potential investors need to strongly consider a wide range of risks and mitigating factors.
More at Startus Magazine https://magazine.startus.cc/early-stage-project-venture-investment-risk/
Ensure all pertinent risks are documented especially for any future litigation purposes.