---
title: What do I need to know about early-stage investing? Are these investments risky?
description: What do I need to know about early-stage investing? Are these investments risky?
---

[Skip to content](https://help.alta.exchange/investor-resources/what-do-i-need-to-know-about-early-stage-investing-are-these-investments-risky#main-content)

English

Show submenu for translations

[![Alta Logo](https://help.alta.exchange/hs-fs/hubfs/Alta%20Colored%20-%20No%20Tagline%20(1).png?width=400&height=100&name=Alta%20Colored%20-%20No%20Tagline%20(1).png)](https://help.alta.exchange?hsLang=en)

Open main navigation

Close main navigation

- English
  
  Show submenu for translations
- [Go to alta.exchange](https://alta.exchange/)

[Go to alta.exchange](https://alta.exchange/)

 This is a search field with an auto-suggest feature attached.

- There are no suggestions because the search field is empty.

1. [Hi 👋How can we help?](https://help.alta.exchange/investor-resources?hsLang=en)
2. [Invest With Alta Singapore](https://help.alta.exchange/investor-resources/invest-with-alta-singapore?hsLang=en)
3. [Equity (Primary & Secondary) for Investors in Singapore](https://help.alta.exchange/investor-resources/invest-with-alta-singapore?hsLang=en#equity-primary-secondary-for-investors-in-singapore)

# What do I need to know about early-stage investing? Are these investments risky?

Companies fundraising on Alta are high-risk opportunities and may not retain their value. Investing in startups and small businesses is inherently risky and standard company risk factors such as execution and strategy risk are often magnified at the early stages of a company.

In the event that a company goes out of business, your ownership interest could lose all value. Furthermore, private investments in startup companies are illiquid instruments that typically take up to five and seven years (if ever) before an exit via acquisition, IPO, etc.

While there are no guarantees that this strategy will reduce your risk, most investors choose to mitigate risk by practicing portfolio diversification. Investing smaller amounts across a large number of opportunities is a good practice in the private markets just as it is in the public markets.

*Any information provided here should not be considered financial advice.*

 

 

 

- [General](https://help.alta.exchange/investor-resources/general?hsLang=en#main-content)

    - [Fee](https://help.alta.exchange/investor-resources/general?hsLang=en#fee)
- [Fundraising With Alta Singapore](https://help.alta.exchange/investor-resources/fundraising-with-alta-singapore?hsLang=en#main-content)

    - [General](https://help.alta.exchange/investor-resources/fundraising-with-alta-singapore?hsLang=en#general)
    - [Submitting A Fundraising Application](https://help.alta.exchange/investor-resources/fundraising-with-alta-singapore?hsLang=en#submitting-a-fundraising-application)
    - [Deal Assessment & Screening](https://help.alta.exchange/investor-resources/fundraising-with-alta-singapore?hsLang=en#deal-assessment-screening)
    - [Fundraising Process](https://help.alta.exchange/investor-resources/fundraising-with-alta-singapore?hsLang=en#fundraising-process)
- [Fundraising with Alta Malaysia](https://help.alta.exchange/investor-resources/fundraising-with-alta-malaysia?hsLang=en#main-content)

    - [General](https://help.alta.exchange/investor-resources/fundraising-with-alta-malaysia?hsLang=en#general)
    - [Submitting a Fundraising Application](https://help.alta.exchange/investor-resources/fundraising-with-alta-malaysia?hsLang=en#submitting-a-fundraising-application)
    - [Fundraising Process](https://help.alta.exchange/investor-resources/fundraising-with-alta-malaysia?hsLang=en#fundraising-process)
- [Invest With Alta Singapore](https://help.alta.exchange/investor-resources/invest-with-alta-singapore?hsLang=en#main-content)

    - [Equity (Primary & Secondary) for Investors in Singapore](https://help.alta.exchange/investor-resources/invest-with-alta-singapore?hsLang=en#equity-primary-secondary-for-investors-in-singapore)
    - [Monetize Shares](https://help.alta.exchange/investor-resources/invest-with-alta-singapore?hsLang=en#monetize-shares)
    - [Income Insurance](https://help.alta.exchange/investor-resources/invest-with-alta-singapore?hsLang=en#income-insurance)
    - [Funding My Account](https://help.alta.exchange/investor-resources/invest-with-alta-singapore?hsLang=en#funding-my-account)
- [Invest With Alta Malaysia](https://help.alta.exchange/investor-resources/invest-with-alta-malaysia?hsLang=en#main-content)

    - [ECF](https://help.alta.exchange/investor-resources/invest-with-alta-malaysia?hsLang=en#ecf)
    - [Know-Your-Client(KYC)](https://help.alta.exchange/investor-resources/invest-with-alta-malaysia?hsLang=en#know-your-clientkyc)
- [Partnerships](https://help.alta.exchange/investor-resources/partnerships?hsLang=en)
- [Product & Technical](https://help.alta.exchange/investor-resources/product-technical?hsLang=en#main-content)

    - [Account & Profile Settings](https://help.alta.exchange/investor-resources/product-technical?hsLang=en#account-profile-settings)
- [Investor Onboarding](https://help.alta.exchange/investor-resources/investor-onboarding?hsLang=en)
- [Alta Exchange](https://help.alta.exchange/investor-resources/alta-exchange?hsLang=en)
- [Deal FAQs](https://help.alta.exchange/investor-resources/deal-faqs?hsLang=en)

[![Alta Logo](https://help.alta.exchange/hs-fs/hubfs/Alta%20Colored%20-%20No%20Tagline%20(1).png?width=400&height=100&name=Alta%20Colored%20-%20No%20Tagline%20(1).png "Alta Logo")](https://help.alta.exchange?hsLang=en)

alta.exchange Help Center

Copyright © 2026, Alta Alternative Investments Pte. Ltd.