What are the risks of investing in startup?

Investing in startups carries significant risks, and it's important to be aware of the potential downsides:

1. There's a risk that the startup may fail, leading to a complete loss of your investment.
2. Startup investments often yield unpredictable and variable outcomes.
3. Such investments are typically highly illiquid, meaning it can be difficult to sell or convert them into cash.
4. Startups do not pay dividends
5. Market volatility can greatly affect startups, which may be more sensitive to economic and cyclical shifts.

How likely is it to lose my investment in a startup?

The likelihood of losing your investment in a startup can be high. Many startups fail due to various reasons such as market misfit, inadequate funding, management conflicts, or competition. Investors should be prepared for the possibility of losing their entire investment.

How does diversification apply to startup investing?

Diversification is crucial in mitigating risks in startup investing. Investing in a range of startups across different industries can reduce the impact of one startup’s failure on the overall investment portfolio.

How can I mitigate risks in startup investing?

Conduct thorough due diligence, diversify your startup investments, stay informed about market trends, and invest only what you can afford to lose.

Does Infinyte do any due diligence while listing a startup on its platform?

We handpick companies that have successfully completed their Series A fundraising round-up to those that have achieved Unicorn status. It's worth noting that these enterprises are typically backed by top-tier VCs and Private Equity Firms who conduct rigorous and thorough due diligence prior to their investment. As a platform, Infinyte Club does not engage in this due diligence process and neither provides any investment advice. Consequently, we urge you to proceed with caution and conduct your own research before making an investment.