What happens when a company I invested in fails?

When investing in startups, investors take on a significant amount of risk. It may take anywhere between seven and ten years to see a return on your investment, if at all. Due to the highly risky nature of startup investments, you should only invest what you can afford to lose.

Although it depends on the terms of your initial investment, in the case that a company you have invested in fails, you will not get your investment back.