Investments in private, early-stage companies are extremely risky and illiquid. While the opportunity for outsized returns exists, the chances that startup investors will lose the entirety of their investments are high (significantly higher than the chances of failure when investing in public stocks, for example) for any single investment. All potential investors should err on the side of caution and expect to hold their investments for 5+ years before any potential liquidity event may take place (e.g. an acquisition, IPO, listing on a public exchange, the development of another secondary market to trade shares, or bankruptcy). A significant percentage of startups do result in bankruptcy, recapitalizations, or distressed acquisitions, and may incur a loss of capital for investors. It is critical that SeedInvest users look to build a portfolio of startup investments to diversify the risk associated with any single startup investment. Users can learn more about the risks of startup investing and diversification here (https://www.seedinvest.com/blog/seedinvest/diversification-strategies).


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