Meta Pixel
Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

News and Announcements

Capital Raising Alert: 4 Ways Investors Can Lose by Participating – Know the Risks

  • Published May 25, 2023 4:40AM UTC
  • Publisher Wholesale Investor
  • Categories Capital Raising Tips

If you’re a startup founder seeking capital, it’s important to understand that potential investors may be thinking about the different ways they can lose by participating in your capital raise. While you may be focused on the benefits and potential returns, investors may be more focused on mitigating risk. In this video, we explore the four ways investors can lose and what you can do to address these concerns.

YouTube player

The first way investors can lose is through a decline in the overall market. If the economy experiences a downturn, investors may not see the returns they were hoping for, or they may even lose their investment entirely. The second way investors can lose is through the failure of the specific industry in which your business operates. If the industry takes a hit, your business may be impacted as well.

The third way investors can lose is through the failure of your specific business. This could be due to a number of factors, including poor management, insufficient cash flow, or a lack of market demand. Investors will want to know that you have a solid plan in place to mitigate these risks.

The final way investors can lose is through dilution of their investment. If you raise additional capital in the future, your investors’ ownership percentage will decrease. It’s important to be transparent with investors about your plans for future capital raises and how it may impact their investment.

To address these concerns, it’s important to have a clear understanding of your industry and market, as well as a solid business plan that addresses potential risks. Be transparent with your investors about the potential for market downturns and the specific risks facing your business. By addressing these concerns upfront, you can help build trust with potential investors and increase the likelihood of a successful capital raise.

Capital Insights
Cosmo Innovations Founder Eyes Global Rollout of SkinGate, IPO by 2027

Dr. Mathew Jafarzadeh, founder of Cosmo Innovations, is set to revolutionize the $65 billion home beauty tech market with SkinGate, a patented skincare infusion device. Following his presentation at Emergence 2025, he revealed plans for a global rollout, aiming for a 2027 IPO on NASDAQ or the Hong Kong Exchange. Discover how SkinGate, backed by 110+ patents, seeks to attract “smart capital” and redefine skincare delivery.

Company Updates
Stop Leaving Millions on the Table: The Investor Secret You’re Missing!

In an Australian business landscape increasingly defined by volatility and intense competition for capital, the art of robust stakeholder relations has evolved beyond a mere governance checkbox. For founders, boards, and executive teams, the ability to genuinely inform and engage investors isn’t just about meeting disclosure requirements; it’s a strategic imperative that directly impacts capital […]

Capital Insights
Ecosystems Over Exit: Callum Laing on Disrupting Small Business M&A

At Emergence Singapore, Callum Laing of Veblen Director Program presented a bold new vision for small business M&A: “Ecosystems Over Exit.” He shared how his Unity Group takes cash-generating businesses public, focusing on growth over immediate founder exit. Discover his unique approach, how interconnected ecosystems drive massive deal flow, and a three-step framework for any business to amplify reach and capital raising.

Join over 45,000+ sophisticated investors

Join Now