1. Data from Cambridge Associates LLC March 31, 2016 U.S. Venture Capital Index® and Selected Benchmark Statistics Report. The Early Stage Index includes pooled end-to-end return, net of fees, expenses, and carried interest; past performance is no guarantee of future returns. Entities raising capital on SmartCapital are not necessarily representative of those which have generated positive historical returns. The 30-year period includes at least two sub-periods of unusually large returns, the-1990s and the most recent few years. Indices are unmanaged and an investor cannot invest directly in an index. Index returns do not reflect the cost of investing in an index. These indexes are not necessarily representative of the companies listed on SmartCapital and do not reflect projected returns.
2. While early-stage venture capital has historically generated larger returns than both the S&P 500 and Barclays Credit Bond Index over the last 30 years, past performance is no guarantee of future returns. Entities raising capital on SmartCapital are not necessarily representative of those which have generated positive historical returns. In addition, early-stage venture capital investing has a higher rate of failure, volatility, and less liquidity. Only those prepared for the potential of extreme volatility, a lack of liquidity, and to lose the entire amount of their investment should invest in early-stage venture capital.
3. SmartCapital’s due diligence process is no guarantee of success or future results. All investors should carefully review each investment opportunity and cancel their subscription within the allotted time-frame if they do not feel comfortable making any specific investment based on their own due diligence. Learn more about due diligence in our vetting process in our FAQs.
4. While larger portfolios of startup investments have historically been correlated with an increased likelihood of higher returns, past performance is no guarantee of future results. Startups raising capital on SmartCapital are not necessarily representative of those which have generated positive historical returns. In addition, early-stage startup investing has a higher rate of failure, volatility, and less liquidity. Only those prepared for extreme volatility, a lack of liquidity, and the risk of losing their entire investment should invest in early-stage startup investments.
This communication is for information purposes only and should not be regarded as a recommendation of, or an offer to sell or as a solicitation of an offer to buy, any financial product. Investments are offered only via definitive transaction documents and any potential investor should read such documents carefully, including all of the risk factors relating to the investment, before investing. Investments in early stage companies involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest. The most sensible investment strategy for investing in early stage companies may include a balanced portfolio of different companies. Early stage companies should only be part of your overall investment portfolio. Investments in early stage companies are illiquid and those investors who cannot hold an investment for the long term (at least 5-7 years) should not invest.