Entrepreneurial investments certainly offer particular advantages and potential returns. However, in addition to these advantages, there are also certain risks and, as with all other investments, disadvantages that should be taken into account when making an investment decision.
The following points should be checked when considering an entrepreneurial investment. On match4capital, potential investors can contact the companies presented on the portal directly and find out about the general conditions, the vision and the associated prospects in webinars, personal meetings or live events.
Possible long-term capital commitment
Money invested via entrepreneurial investments may be tied up for the long term, as the sale of shares cannot be guaranteed. A private sale of shares is often only possible on the secondary market. In some cases, the sale to third parties may even be excluded by the articles of association. However, if the company chosen by the investor is aiming for an initial public offering (IPO), tokenization (ICO) or sale to an acquiring group, liquidity may also be available again in the short term.
No deposit protection
In the case of an entrepreneurial investment, the investor effectively acts as an entrepreneur in the legal sense. The legislator assumes that the entrepreneur is therefore able to assess the opportunities and risks of the entrepreneurial development himself and therefore no deposit protection is necessary, as is legally required for fixed-interest bank deposits, for example. In the event of a negative economic development of the company, as with any other entrepreneurial activity, there is a risk of losses up to the complete loss of the invested sum. The disadvantage of a possible total loss applies in principle to any entrepreneurial activity, regardless of its form.
Possibly no or minimal co-determination
Depending on the type of investment, an entrepreneurial participation may include voting rights or only subscription rights. However, even in the case of a type of investment with voting rights, the investor's individual influence can be greatly reduced by his own shareholding. For this reason, it is certainly important to form your own impression of the people involved before making an investment decision. Invitations to the investor webinars of the companies presented on match4capital give potential investors an easy opportunity to get to know the people involved.
The match4capital conclusion
In general, macht4capital recommends only investing money in entrepreneurial investments where total loss or long-term commitment is perfectly acceptable. By presenting several capital companies and investment models, it is easier for an investor to divide his planned risk investment between several companies in order to spread the risk to a certain extent.
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