Risk Disclosure
Last updated: January 1, 2025
⚠️ Important Warning
Investing in startups involves substantial risk of loss and is not suitable for all investors. The following risks are not exhaustive — please read carefully before investing.
1. Risk of Total Loss
The majority of startups fail. You should expect that most of your startup investments may result in a total loss of invested capital. Never invest money you cannot afford to lose entirely.
2. Illiquidity
Startup investments are highly illiquid. There is no public market for these securities, and you may not be able to sell or transfer your investment for many years — if ever. Plan to hold any investment for 7–10 years or more.
3. Dilution
Your equity stake may be diluted through future financing rounds, option pool expansions, or other issuances of securities. Future investors may receive preferential terms that reduce your economic return.
4. Valuation Uncertainty
Early-stage company valuations are highly speculative. The valuation at which you invest may not reflect the actual value of the business, and future valuations may be significantly lower.
5. Management Risk
The success of a startup depends heavily on its founders and management team. Key person departures, management failures, or changes in strategy may materially harm the business.
6. Market and Competition Risk
The AI industry is highly competitive and rapidly evolving. Portfolio companies face competition from well-funded incumbents, changing technology landscapes, and shifting market dynamics.
7. Illustrative Past Deals
Any past deals shown on InfinityVC are shown for illustrative purposes only to represent the caliber of deals we source. They do not represent actual investments made by InfinityVC investors and are not indicative of future results.
8. Not Investment Advice
InfinityVC does not provide investment advice. All information on this platform is for informational purposes only. Consult with qualified financial, tax, and legal advisors before making any investment decision.
Contact
Questions about this disclosure: legal@infinityvc.com