Risks & Important Information
Read this before you invest. We mean it.
Important Disclaimer
Investing in early-stage businesses carries significant risk. You could lose your entire investment. The information on this site does not constitute financial advice. Do not invest money you cannot afford to lose.
[ACTION REQUIRED] Solicitor Review
We strongly recommend you take independent legal advice before signing the SAFE agreement. The document will be provided in advance so you or your solicitor can review it. There is no pressure and no deadline. Take the time you need.
What Could Go Wrong
Total Loss of Investment
Grassroots is pre-revenue. There is a real chance this business does not succeed. If it fails, you will lose everything you invested. All of it.
Illiquidity
Your SAFE cannot be easily sold or transferred. There is no secondary market. You should treat this money as locked away indefinitely.
No Guaranteed Return
This is not a loan. There is no interest, no dividend, and no scheduled repayments. You only see a return if the company raises a future round, is acquired, or goes public.
Dilution
Future funding rounds will dilute your ownership percentage. The £300,000 valuation cap protects against unlimited dilution, but your percentage will decrease over time as new shares are issued.
Sole Founder Risk
Grassroots is a sole-founder business. If the founder is unable to continue for any reason, the business may cease to operate.
Regulatory Risk
Alcohol duty, licensing requirements, and food safety regulations could change. New regulations could increase costs, restrict operations, or make the business model unviable.
Market Risk
Consumer preferences may shift. New competitors may emerge. The market for alcoholic ginger beer may not develop as anticipated. There is no guarantee of demand.