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Risks

The risks.

Early-stage startup investments are illiquid, concentrated and can result in a complete loss of capital.

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Risk register.

RiskWhat it meansHow it is handled
Loss of capital

Many early-stage companies fail, and an investment can go to zero.

The vehicle may spread capital across several companies, but it cannot make the portfolio safe.

Illiquidity

Private company investments may remain locked up for years, with no secondary buyer.

Investors should participate only with capital they can hold for the full life of the vehicle.

Concentration

A small portfolio can remain concentrated by company, stage or sector.

The final portfolio construction and limits will be defined in the vehicle documents.

Later financing

Valuation, dilution, preferences and follow-on capital can change the outcome.

Each investment is reviewed on its own terms and tracked through the Capital Coda record.

Agent error

Coda can miss information, misread a source or make a weak recommendation.

Source-linked outputs, memory, evaluations and human review reduce the risk. Hemkund makes the final decision.

Structure and execution

The pooled vehicle and partner arrangements are still being completed.

Final eligibility, fees, governance, reporting and terms will be set out in definitive documents.