Risk disclaimer

Investing in young, unlisted companies is highly risky. You can lose all of the capital you invest. Please read these notes before you make a decision on the basis of information on CapitalReach.

1. No advice, no brokerage

CapitalReach is a software and communication platform: it does not receive or forward investment orders, it does not advise, and it does not hold money.

We are neither an investment adviser nor an investment broker and hold no licence under the German Banking Act, the German Investment Firm Act or section 34f of the German Trade Regulation Act. We do not offer investments, recommend them or assess whether an investment suits you. Information on the platform is not investment, legal or tax advice, and it is not an offer to buy or sell any investment. Offers are made by the startup concerned alone, which is itself responsible for making them lawfully.

2. What we check, and what we do not

The startup provides the information on its profile and is responsible for it; the same applies to an investor and their profile. We check only the points below, and we say so on the profile. A date of review or a record on file is no guarantee that the information is correct, and no recommendation. Do your own checks before you invest, agree to anything or share confidential material.

Startup profiles

Before a startup profile goes live, a person checks it against our checklist. The profile states when that happened: "Reviewed against our listing checklist on [date]". The checklist covers exactly these points:

• Identity: we compare the company name and registration number with the entry in the public commercial register.
• Authority: we check that the person who created the profile is named in the same register entry as a director, board member or shareholder.
• Figures: we check that the figures on the profile are consistent with each other. This is not a check that they are correct. We see no bank statements, no accounts and no invoices.
• Documents: we open every document in the data room and check that it is the kind of document its title claims and that it can be read, but not what it says.
• Excluded sectors and content: we read the profile against our exclusion list. We do not investigate what the company actually does.
• Website and public presence: we check that they exist and describe the same company.
• Duplicate or impersonated profiles: we search our own profiles for the same name, domain and registration number.
• A working contact: we check that email to the account address arrives and is answered.
• Founders' statement: we check that the founders have confirmed that the profile is true, complete and not misleading. That is their statement, not our finding.

We check nothing beyond this. In particular we do not check whether figures, valuations, forecasts or other claims are correct, or what anyone states about themselves. Figures on a profile come from the founders and are labelled as such.

Investor profiles

Investor profiles go live without a review by us. What an investor states, for example about ticket size, track record, holdings or the investor category they declare, comes from the investor, and we do not check it.

An investor can file records with us. Their profile then shows which records are on file and the date each was checked, and nothing else:

• Domain: that a code we issued was published as a DNS record of the domain of the website on their profile. Our server looks it up.
• Identity: that a reviewer compared a government identity document with a photo of the person. We use no identity-verification provider.
• Firm or fund: that a public company register lists the entity and names the person as one of its officers, and that a document shows they may act for it.
• Funds or accreditation: that a reviewer read the documents supplied. We confirm no balance with any bank, and we do not know whether the money is still there.

Each record expires after twelve months unless it is filed again. A record on file says only that this document or register entry was seen on that date. It is no assessment of an investor's means, mandate, experience or reliability, and it does not mean that an investor will invest. Startups can file the same kinds of records; their revenue documents are read, not audited.

3. Risks of investing in startups

• Total loss: most young companies fail. You can lose all of the capital you invest.
• No liquidity: there is usually no market for shares in unlisted companies. You may be unable to sell your holding for many years.
• Dilution: later funding rounds can reduce your share.
• Subordination: with loans and convertible loans, your claims often rank behind those of other creditors.
• No deposit guarantee or investor compensation: such investments are not protected.
• Diversification: invest only money you can afford to lose, and spread it across several holdings.
• Tax and law: the tax and legal consequences depend on your personal circumstances. Take advice if in doubt.

Past performance and founders' forecasts are no indication of future results.

4. AI-assisted features

The results of our AI-assisted features, such as summaries or whether a profile fits the criteria you stated, are a non-binding aid. They can contain mistakes, they are not a recommendation, and they do not replace your own review.

5. How CapitalReach is paid

CapitalReach is paid only through subscriptions. We charge no fee on any funding round, neither to the startup nor to the investor, and the price of a plan does not depend on whether a round closes, how much it raises or who invests.

6. Where the platform is offered

The directories are open only to users resident or registered in the EU, the EEA or Switzerland. The platform's content is not directed at persons in other states and is not an offer there.

7. Contact

Questions about these notes: capitalreach.vercel.app/contact.