Risk Disclosures
Effective: May 15, 2026 · Version 1.0 · Jurisdiction: DIFC, UAE
Investing in early-stage startups carries substantial risk, including the total loss of capital. Only invest what you can afford to lose.
1. Loss of capital
The majority of early-stage startups fail. You should expect that you may lose all of the money you invest. Past performance is not indicative of future results.
2. Illiquidity
Investments in private companies are illiquid. There is no public market and you may not be able to sell your shares for many years, if at all.
3. Dilution
Your ownership percentage may decrease as companies raise additional capital in future rounds.
4. Lack of voting rights
Many investments through FounderGrade carry limited or no voting rights. Decisions are made by the founders and majority shareholders.
5. Diversification
FounderGrade strongly recommends diversifying your venture portfolio across at least 20 investments to manage individual company risk.
6. Eligibility
Investments are restricted to accredited or professional investors as defined by the regulations of your jurisdiction (DFSA, ADGM FSRA, SEC Reg D, etc.).
7. No investment advice
FounderGrade is a marketplace and information platform. We do not provide investment, legal, tax, or financial advice. Consult a qualified advisor before investing.
8. Credibility scores are not recommendations
Our 8-dimension credibility scores reflect verified signal at a point in time. They are not investment recommendations or guarantees of performance.