Yes. All investments carry some degree of risk and startup and small business investing are riskier investments than investing in large, well-established companies. The earlier you get in, the greater the level of risk. If a young company goes out of business, your ownership interest could lose all value. You may have limited voting power to direct the company due to dilution over time. You may also have to wait five to seven years (or longer) for an exit via acquisition, IPO, etc. The company may never achieve an exit. Because early-stage companies are still in the process of perfecting their products, services, and business model, nothing is guaranteed. That’s why startups should make up only a part of a balanced investment portfolio.