Value Prolific Consulting Services Pvt. Ltd. (‘ValPro’) does not guarantee or make any representation or warranty concerning the completeness, adequacy, or accuracy of this risk disclosure. The risk disclosure below is not intended to be exhaustive or inclusive in nature.
You should, therefore, take professional advice and carefully study the investment documents prior to making any investment decision.
The entrepreneurs listed and featured on Enablers are startups, early stage businesses or small medium enterprises (SMEs). Therefore, when considering investing in these companies, you must take into account the following risks:
- Loss of Capital
Investments in startups, early stage businesses, and SMEs with minimum proven track record involve a high degree of risk. None of the opportunities listed on this website are guaranteed. Neither ValPro nor its affiliates guarantee or assure your investment. You may lose part or all of your principal invested.
The investments presented on this website are generally not publicly traded and highly illiquid. You might not be able to liquidate or otherwise realise cash from your investment for the foreseeable future until and unless the investee company floats on a securities exchange or is bought by another investor or bought back by the promoter.
- Rarity of Dividends
Startups and early stage businesses rarely pay dividends. This means that if you invest in a business listed on the website, even if it is successful, you are unlikely to see any return of capital or profit until you are able to sell your shares in the investee company. Even for a successful business, this is unlikely to occur for a number of years from the time you make your investment.
- Past Performance and Future Results
You should note that the company’s past performance should not be seen as an indication of future results. Company’s forward-looking statements are based on management’s current expectations and assumptions regarding the business and performance, which are inherently susceptible to uncertainty and changes in circumstances.
- Economic Downturn and Market Volatility
The success of any investment activity is determined to a certain extent on general economic conditions such as the availability of external credit markets, equity markets, stability in global economies, etc. Economic downturns and general market volatility can negatively impact the value of investments. Startup and early stage companies are particularly vulnerable to economic downturns.
Any investment you make is likely to be subject to dilution. This means that if the business raises additional capital at a later date, it will issue new shares of the investee company to the new investors, and the percentage of the investee company that you own will decline. These new shares may also have certain preferential rights to dividends, sale proceeds and other matters, and the exercise of these rights may work to your disadvantage.