Legal
Investment Risk Disclosure
Last updated: July 14, 2026
Investing through ZetFund is high risk.
You could lose all the money you invest. Investments in startups, private companies, and franchises are illiquid, may be diluted, and offer no guaranteed returns. Only invest money you can afford to lose, and read this disclosure in full before investing.
1. Loss of Capital
Most early-stage businesses fail, and established businesses and franchises can also fail. If a company you invest in fails, you will likely lose your entire investment. There is no deposit protection or compensation scheme covering investments made through the Platform. Never invest more than you can afford to lose without changing your standard of living.
2. Illiquidity
Investments made through ZetFund are in private companies. There is no public market for these investments, and ZetFund does not operate a secondary market. You should expect to hold your investment for years, and you may never be able to sell it at all. Even successful companies may not produce an exit event (such as an acquisition or public listing) that lets you realize a return.
3. No Guaranteed Returns
No return of any kind is guaranteed. Most private companies do not pay dividends; any return typically depends on a future exit that may never happen. Projections, targets, and forecasts in campaign materials are prepared by the companies themselves, are inherently uncertain, and frequently prove wrong. Past performance - of a company, a sector, or the Platform - is not a reliable indicator of future results.
4. Dilution
Companies that grow usually need to raise more capital. When they issue new shares in later rounds, your percentage ownership - and potentially the value of your stake - can decrease. Later investors may also receive rights (such as preferred shares) that rank ahead of yours. Unless you have and exercise pre-emption rights, you should expect your holding to be diluted over time.
5. Early-Stage Company Risk
Early-stage companies carry additional risks: limited operating history, unproven business models, dependence on a small founding team, untested markets, and limited financial data. The information available about such companies is inherently less complete and less verifiable than for mature businesses - which is one reason each ZetFund score carries a separate confidence rating. A low confidence rating means the score rests on less complete or less verified data.
6. Scores Are Informational Tools, Not Guarantees
The ZetFund score, tier grades, confidence ratings, and percentile benchmarks are automated analytical tools built primarily from information provided by the companies themselves. They are designed to help you compare and question opportunities - not to answer the question for you. A high score is not a guarantee of success, safety, or returns, and a low score is not a prediction of failure. Scores are not financial advice and are not a recommendation to invest. Always do your own due diligence and consider seeking independent professional advice.
7. Diversification
Because any single private investment can fail completely, investments of this kind should only ever form a small part of a diversified portfolio. Spreading capital across multiple investments, sectors, and asset classes reduces - but does not eliminate - the risk of loss.
By investing through ZetFund you confirm that you have read and understood this disclosure. See also our Terms of Service and How It Works.