Risks
What can go wrong.
This page exists because we would rather you know here than find out later. Read it before you invest, not after.
You can lose everything
Early-stage private companies fail, and most of them do. An investment in one is not protected, not insured and not guaranteed by anyone. You should be prepared for the entire amount to be worth nothing, and you should not invest money you need.
There is no liquidity today
There is no way to sell a private holding on Captal at present. Secondary trading is something Captal intends to build; it does not exist now, no date is promised, and it may never be available for a given company. Assume you cannot get your money back until the company itself provides a way — an acquisition, a buyback, or a public listing — and that this may take many years or never happen.
Accredited investors only
Offerings are made under Rule 506(c) of Regulation D to verified accredited investors only. Accreditation is verified separately before any investment. Captal membership does not make you accredited and does not complete that verification.
A $25,000 minimum
Where a minimum is shown it is $25,000. A minimum of that size in a single early-stage company is a concentrated position, and concentration multiplies every other risk on this page.
Valuations are not prices
A private company's valuation is set in a negotiation, not by a market. It is not a quoted price, nobody is standing behind it, and it can be revised down sharply — or become meaningless — at the next round.
Information is limited
Private companies are not required to report the way public ones are. You will have less information, later, than you would about a listed company, and what a company chooses to share may change.
Dilution
Companies issue new shares when they raise again. Your percentage of the company can fall even when nothing goes wrong, and later investors may hold rights that rank ahead of yours.
Captal is not your adviser
Captal does not provide investment, legal or tax advice, and nothing on this site is a recommendation to buy any security. Offerings are made through a registered broker-dealer partner. Read the offering documents and take your own advice.
This summary is not complete and does not replace the offering documents for any particular investment, which contain the risk factors that apply to that company.