Investment risks
Investing in early-stage private companies is one of the highest-risk asset classes. Only invest money you can afford to lose entirely. Fractio does not guarantee returns and is not a substitute for professional financial advice.
You can lose everything you invest
Most startups fail. If a company you back fails, closes down, or is unable to return capital, your investment is worth zero. There is no deposit insurance, no compensation scheme, and no guarantee of recovering any amount you invested.
Returns are not guaranteed
Nothing on Fractio — including projections, past performance, founder claims, or descriptions in a campaign — is a promise of future returns. Startups that look promising still fail. Do not treat any campaign as a "safe bet".
Shares are illiquid — no secondary market yet
You cannot currently sell your shares on Fractio. There is no marketplace for secondary trades and no promise that one will exist. Expect your capital to be locked up indefinitely, potentially forever. Returns only come from founder-initiated distributions or a company exit — and neither is guaranteed to happen.
Dilution and future rounds
Founders may raise additional capital in the future, which can dilute your ownership percentage. Fractio does not grant you veto rights or pre-emption over future rounds.
Platform fees
A 2% platform fee is charged on every investment, in addition to the amount you invest. This fee is not refunded on distributions or exits. If a campaign fails to hit its target and refunds are issued, the fee is returned in full alongside your investment.
Verification is a screen, not a guarantee
Fractio's 3-stage verification confirms that a company and its bank details exist and are consistent. It does not guarantee the business will succeed, that the founders will act in your interest, or that the numbers they present are achievable. Do your own due diligence on every campaign before investing.
5% ownership cap protects you — but doesn't remove risk
The platform prevents any investor from holding more than 5% of any company. This is a concentration limit, not a safety net. The remaining 95% of your investment in a failed company is still at risk.
Before you click "Confirm"
- Only invest amounts you can afford to lose entirely.
- Diversify across many companies rather than concentrating in one.
- Read the campaign page in full and check the founder's disclosures.
- Understand you may not see any return — and if you do, it may be years away.
Fractio is not a registered broker-dealer or investment adviser. Nothing on this platform constitutes personalised financial, tax, or legal advice. Consult a qualified professional before making investment decisions.