What returns can I expect?

Investing in startups and small businesses is risky. Each year, many companies in the US go out of business due to changing market conditions, unforeseen challenges, and other problems. FundersClub funds invest in high-risk opportunities and may not retain their value. If a business in which a fund owns stock goes out of business, your ownership interest in such fund will lose all value. 

While there are no guarantees that this strategy will reduce your risk, some investors choose to address this risk by practicing portfolio diversification. That is, investing in smaller amounts and spreading their investment across a larger number of different opportunities, which also helps them to support a broader number of entrepreneurs.