Risk summary

Risks of Investing

Man standing next to chart holding money.

The reality is investments can be risky

Investing entails risks and requires thorough research before making any investment decisions. Reduce potential losses by conducting comprehensive research before hitting the invest now button.

What are the key risks?

We emphasize the most important details to understand before making an investment.

You could lose all the money you invest

  • Our investment are based on equity agreements between investors and investees, after investing, an equity agreement is issued. The investor now owns a portion of the company (shares). Investors  often lose 100% of the money they invested, as most startup businesses fail.

  • 144 checks startups profiles and select them according to success rates and due diligence standards. Nevertheless, businesses fail and 144 is not liable for any losses incurred on either end. You should always do your own research before investing.

  • Putting all your money into a single business or type of investment is risky. Spreading your money across different investments makes you less dependent, so keep that in mind.

You won't get your money back quickly

  • Even if the startup you invest in is successful, it will likely take several years to get your money back.

  • The most likely way to get your money back is if the business is bought by another business or lists its shares on an exchange such as DAX, NASDAQ or LSE. These events are called trigger events and can take several years to occur.

  • Startups usually don’t pay you back through dividends. You should not expect to get your money back this way.

The value of your investment can be reduced

  • As an equity based investment, the percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most startups issue multiple rounds of shares.

  • These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment.

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

144 does not make investment recommendations to you. No communications from 144, through this website or any other medium, should be construed as an investment recommendation. 144 does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with 144, please consult a professional adviser.