Risk Factors & Disclosures

Startup & Early-Stage Investment Risk

Investing in early-stage companies through Attack Capital involves significant risk. All investors should carefully evaluate the risks outlined below before deciding to invest in any startup, fund, or venture-studio–built company. No investment on our platform guarantees returns, liquidity, or future performance.

Investing in startups, whether AI, SaaS, robotics, or deeptech, carries a high probability of loss. Many early-stage companies fail to achieve revenue, product-market fit, regulatory approvals, or follow-on financing. Investors should expect that they may lose the entirety of their investment, and that any potential returns are uncertain, delayed, or may never materialize.

Venture Studio–Built Company Risk

Companies created inside the Attack Capital venture studio benefit from our 30-day build system, but still face risks, including:

• The business model may fail to validate.
• The product may not achieve traction.
• Follow-on investors may not fund the company.
• AI adoption cycles may shift faster than expected.

Studio involvement reduces execution risk but does not eliminate market, product, or operational risk.

Risks Related to AI, Deep Tech & Emerging Technologies

Companies built or funded by Attack Capital frequently rely on frontier technology, AI agents, automation systems, robotics, machine learning, and data infrastructure. These categories involve unique challenges:

• Rapid technological change; solutions may become obsolete.
• Dependence on specialized technical talent.
• High R&D costs and long development cycles.
• Complex intellectual property considerations.
• Regulatory uncertainty in AI governance and compliance.
• Shifts in public policy, privacy laws, or industry standards.

These risks may materially impact performance, valuations, or the long-term viability of a company.

Market & Economic Volatility

Macroeconomic conditions, including interest rates, capital market liquidity, geopolitical events, supply chain changes, or recessionary cycles, can negatively affect startup fundraising, customer adoption, valuations, and exit opportunities.

There is no guarantee that capital markets will be available when a startup needs financing, or that follow-on rounds will occur at favorable terms.

Past Performance Does Not Predict Future Returns

The historic outcomes of other YC, GFC, or Slow Ventures–backed companies, or prior Attack Capital studio companies, do not predict or guarantee future results. Each startup is unique and carries independent risk.

Valuation Uncertainty

Early-stage valuations are highly subjective and may not reflect actual financial performance, market comparables, ability to scale, or investor appetite.

Because most companies we work with are private and pre-revenue, valuing them accurately is inherently difficult. Investors should not rely on valuations as indicators of liquidation value or exit potential.

Minority Ownership & Limited Control

Most investments in the Attack Capital ecosystem represent minority, non-controlling stakes. Investors typically cannot influence strategic decisions, management appointments, future financing terms, or exit timelines. Founders, institutional VCs, or strategic investors may make decisions that do not align with every investor’s preferences.

Limited Information Rights

Private companies are not required to share the same level of financial or operational disclosure as public companies. Investors may receive limited, delayed, or incomplete information, making it difficult to independently assess performance or risk exposure.

No Assurance of Follow-On Capital

Startups often require multiple rounds of funding to reach sustainability. There is no guarantee that capital will be available or that new investors will participate at valuations favorable to early investors. Down rounds, recapitalizations, or investor restructurings can result in dilution or loss of economic rights.

Illiquidity & No Secondary Market Access

Investments made through Attack Capital, whether through the AI fund, co-investment vehicles, or studio-born companies, are illiquid and long-term. There is no public market for these securities, no expectation of near-term liquidity, and no guarantee of acquisition, IPO, or secondary sale.

Investors should assume their investment may be held for 7–12 years or longer without liquidity.

Regulatory & Compliance Risk

Startups, especially AI, fintech, and healthcare companies, may operate in regulated environments. Risks include changes in AI governance rules, HIPAA, FINRA, GDPR, or PCI compliance challenges, delays in approvals, and penalties for non-compliance. Regulatory shifts may materially impact product viability, costs, or business models.

Conflicts of Interest

Attack Capital may hold multiple roles (studio operator, investor, advisor, board member) across different stages of a company’s lifecycle. Decisions made for the long-term benefit of the company may not always align perfectly with individual investor interests.

Forward-Looking Statements Risk

Startup materials may contain future-looking projections or assumptions. These are not guarantees and may differ materially from actual results due to market shifts, execution challenges, product delays, competitive activity, or macroeconomic events. Investors should not rely on forecasts as indicators of financial performance.

Tax Considerations

Investments made through Attack Capital may have complex tax implications, depending on entity structure, investor jurisdiction, equity instruments used, and capital gains treatment. Investors are responsible for consulting their own tax professionals. Attack Capital does not provide tax advice.

Limited Operating History

Many companies in our ecosystem are newly formed or pre-revenue. Limited track records make it difficult to evaluate execution capability, revenue strategy, unit economics, or market adoption. Projections may not be achieved or may require significant pivoting.

Confidentiality & Proprietary Information

Investors may receive confidential materials about startups. Unauthorized disclosure may harm the startup, result in a competitive loss, or lead to legal consequences. Investors must protect all private information shared with them.