Risk Warning
Last updated - July 10, 2026
About us
We invest alongside Tier 1 VCs
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Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment. You could lose all the money you invest, and are unlikely to be protected if something goes wrong.
Founder Factor invests in early-stage technology companies, most of them at the point they join the Y Combinator accelerator. It does this through special-purpose vehicles, each holding a portfolio of these companies. Investing this early carries a high risk of loss. Please take a few minutes to understand the main risks before you invest.
1. You could lose all the money you invest
The companies Founder Factor backs are early-stage startups. Most early-stage startups fail, and when they do the investment in them is usually worth nothing. It is normal for a large share of the companies in a portfolio like this to fail completely, and the returns depend heavily on a small number succeeding. You should only invest money you can afford to lose entirely, without it affecting your standard of living.
2. You are unlikely to be protected if something goes wrong
Founder Factor Management LLC is not authorised or regulated by the Financial Conduct Authority. Investments of this kind are not covered by the Financial Services Compensation Scheme, so you cannot claim compensation if things go wrong, and you are unlikely to be able to take a complaint to the Financial Ombudsman Service.
3. You are unlikely to get your money back quickly
These are highly illiquid investments. There is no market on which to sell your interest, and you should expect to hold it for many years. You will usually only see a return if and when a company in the portfolio is acquired or floats on a stock exchange — outcomes that can take many years and may never happen. You should not invest money you might need to access in the meantime.
4. Don't put all your eggs in one basket
Concentrating your money in a single, high-risk asset class increases your risk. While each Founder Factor vehicle spreads money across a number of companies, this is still one narrow, speculative type of investment. For most people, a sensible approach is to put only a small portion of their money into high-risk investments like this, and keep the rest in more diversified, lower-risk holdings.
5. The value of your investment can fall
Early-stage companies usually raise further funding as they grow. When they do, your stake can be diluted, reducing the value of your investment. Valuations at this stage are uncertain and can go down as well as up, and the value of the overall portfolio may fall.
Take your time
This is a long-term, illiquid, high-risk investment that will not be right for everyone. It is available only to high net worth individuals, sophisticated investors and investment professionals. If you are unsure whether it is suitable for you, seek independent financial advice before investing. To learn more about high-risk investments and how to protect yourself, visit the FCA's website.
Founder Factor invests in early-stage technology companies, most of them at the point they join the Y Combinator accelerator. It does this through special-purpose vehicles, each holding a portfolio of these companies. Investing this early carries a high risk of loss. Please take a few minutes to understand the main risks before you invest.
1. You could lose all the money you invest
The companies Founder Factor backs are early-stage startups. Most early-stage startups fail, and when they do the investment in them is usually worth nothing. It is normal for a large share of the companies in a portfolio like this to fail completely, and the returns depend heavily on a small number succeeding. You should only invest money you can afford to lose entirely, without it affecting your standard of living.
2. You are unlikely to be protected if something goes wrong
Founder Factor Management LLC is not authorised or regulated by the Financial Conduct Authority. Investments of this kind are not covered by the Financial Services Compensation Scheme, so you cannot claim compensation if things go wrong, and you are unlikely to be able to take a complaint to the Financial Ombudsman Service.
3. You are unlikely to get your money back quickly
These are highly illiquid investments. There is no market on which to sell your interest, and you should expect to hold it for many years. You will usually only see a return if and when a company in the portfolio is acquired or floats on a stock exchange — outcomes that can take many years and may never happen. You should not invest money you might need to access in the meantime.
4. Don't put all your eggs in one basket
Concentrating your money in a single, high-risk asset class increases your risk. While each Founder Factor vehicle spreads money across a number of companies, this is still one narrow, speculative type of investment. For most people, a sensible approach is to put only a small portion of their money into high-risk investments like this, and keep the rest in more diversified, lower-risk holdings.
5. The value of your investment can fall
Early-stage companies usually raise further funding as they grow. When they do, your stake can be diluted, reducing the value of your investment. Valuations at this stage are uncertain and can go down as well as up, and the value of the overall portfolio may fall.
Take your time
This is a long-term, illiquid, high-risk investment that will not be right for everyone. It is available only to high net worth individuals, sophisticated investors and investment professionals. If you are unsure whether it is suitable for you, seek independent financial advice before investing. To learn more about high-risk investments and how to protect yourself, visit the FCA's website.
