How can I mitigate risk on my investments?

Build a portfolio

The best way to maximise the chance of investing in a successful company is by building a portfolio of a range of investments throughout all sectors and sizes of businesses.

Conduct due diligence

It is important that as an investor, you take time to research and understand each business you plan on investing in. Read their business plans, financial reports, exit strategy, intellectual property, team information and current achievements to make an informative decision on whether this investment is right for you. Can you see yourself making a return from this investment in the future? All investments listed on GrowthFunders are vetted to ensure the businesses are capable of high growth in the future. However, all businesses are at risk of failure.

Anticipate follow on investments

The majority of companies that receive investment through GrowthFunders will need additional rounds of funding in the future. This may already be outlined in their financials or their business plan, so it is important to read these thoroughly.

Be an active investor

It is important that the investor and the entrepreneur keep in touch throughout the investment process and post-investment. GrowthFunders ensure that all entrepreneurs issue their investors a quarterly report on how the company is performing and what their investment has been worth so far. This serves to gives you, the investor, peace of mind that your investment was truly worthwhile.