Legal
Risk warning
Last updated 1 September 2026
Don't invest unless you're prepared to lose all the money you invest. Investing in early-stage ideas and companies is high risk, and you are unlikely to be protected if something goes wrong.
You could lose all your money
Most early-stage ventures fail. Ideas and prototypes on Foundsy are earlier still — many will never become companies at all. You should only commit money you can afford to lose entirely, and you should not put a significant part of your savings into this asset class.
You are unlikely to be protected
Foundsy is not authorised or regulated by the Financial Conduct Authority. We are an introduction platform, not a broker, adviser or fund. The Financial Services Compensation Scheme does not cover these investments, and the Financial Ombudsman Service will not usually be able to consider a complaint about them.
Your money is locked up
There is no secondary market for shares in an unlisted company or a licence in an unproven idea. Even if the venture succeeds, it may be many years before you can sell, and you may never be able to.
You will probably be diluted
Later funding rounds issue new shares, reducing the percentage you hold. Unless you have pre-emption rights and the means to follow on, your stake will shrink over time.
Don't put all your eggs in one basket
Experienced early-stage investors spread money across many opportunities, expecting most to return nothing. Concentrating in one idea materially increases your risk of total loss.
Do your own due diligence
Verification badges on Foundsy record checks we made at a point in time. They are not an endorsement, a valuation, or a view on whether an opportunity is any good. Figures, traction and IP claims are supplied by creators. Take independent legal, tax and financial advice before committing money, and never send funds through Foundsy — we do not handle investment money in any form.