Investing Guidelines

Investing in startups is very risky—most of them go out of business and very few return a profit.

Investing Guidelines

Please read the following guidelines before investing via Smartup Solutions.
  • Startups are very risky investments. Expect to lose your money and don’t invest more than you’re comfortable losing. Even if you invest through a syndicate or fund.
  • Start small. Invest more as you learn more. And never invest more than 5% of your net worth in startups—these investments are risky and illiquid.
  • Diversify. Only invest if you have enough capital to make 15-20 startup investments. Even still, you should expect your total losses to exceed your gains.
  • Past performance does not predict future success. Just because a syndicate or fund has made money in the past, doesn't mean it will make money in the future.
  • Co-invest with experienced investors and syndicate leads. Make sure you invest on similar terms and understand the terms that are different.
  • The lead investor in a syndicated startup may have conflicts of interest with you. For example, she may be an investor in a competitor.
  • Don't invest in a company just because it has good press or famous investors.
  • Do your own research. The information on this site is submitted by users and is not verified by Smartup. We do not conduct due diligence on any syndicate or company.
  • Startups change plans constantly. And they don't need your permission to do so. Plans and forecasts are not predictions about the future.
  • You may not have the same rights as other investors, including the right to invest in future financings or a board seat. This means your returns may not be comparable to theirs.
  • Do not publicly discuss any Smartup investments or investment opportunities.
  • Evaluate investment opportunities based on facts. Don't make or consider forecasts.
  • You must agree not to hold Smartup responsible for your losses or missed opportunities.
  • When in doubt, don’t invest.