What happens if Funderbeam/Startup goes out of business?
As much as we’re working to make this as unlikely as possible, you will need to be aware of this as investing does contain risks.
In this scenario, all the SPVs (special purpose vehicle) and importantly your investment remain completely unharmed in any way. The SPV is bankruptcy-resistant as it is structured in a way that its sole activity is holding the investment—no other economic activity is possible.
Unfortunately, in this case, the SPV’s investment value drops to zero. According to the terms of your agreement, this is a liquidation event and investors (creditors) will lose their right to demand repayment.
️Warning: Investing in early-stage and growth companies puts your capital at risk. Please read our Risk Disclosure Statement