SEBI-Mandated Risk Factors
The following risk factors are disclosed in accordance with SEBI (Alternative Investment Funds) Regulations, 2012. This is not an exhaustive list — investors should consult their independent financial and legal advisors before committing capital.
High Risk of Capital Loss
ArtVentures Fund invests in early-stage startups. Industry data indicates that a significant majority of early-stage ventures fail within their first five years. Investors must be prepared for the total and permanent loss of invested capital. No guarantee or assurance of capital preservation is provided.
Illiquidity Risk
Investments in ArtVentures Fund are illiquid. There is no secondary market for Fund units and no exchange listing. Investors cannot sell, transfer, or exit their investment before the end of the stated 5–7 year investment horizon, except in extraordinary circumstances at the sole discretion of the Fund Manager.
No Guaranteed Returns
The Fund's target Internal Rate of Return (IRR) of 15–25% is an aspirational goal based on historical comparable performance and is not a promise, guarantee, or commitment. Actual returns may be materially lower, zero, or negative. Return projections are based on assumptions that may not materialise.
Concentration Risk
The Fund's portfolio may be concentrated in a limited number of companies, sectors (Deep Tech, FinTech, B2B SaaS), or geographies. A downturn in a concentrated sector or the failure of a small number of portfolio companies could disproportionately and materially reduce overall Fund returns.
Regulatory Risk
The Fund operates under SEBI AIF Regulations 2012 and other applicable Indian laws. Changes in SEBI regulations, tax laws, foreign investment rules, or sector-specific regulations may adversely affect the Fund's ability to invest, hold, or exit positions, and may impact returns or investment structures.
Valuation Risk
Portfolio companies are unlisted private entities. Their fair market value is inherently uncertain and relies on periodic estimates using DCF, comparable transactions, or other methodologies. Stated NAV may not reflect actual realizable value. Valuations may be significantly lower at the time of exit than interim estimates suggest.
Dilution Risk
Portfolio companies may raise additional equity capital in subsequent funding rounds (Series A, B, C, etc.) at valuations that may be lower than prior rounds (down rounds). These future raises will dilute the Fund's equity ownership percentage and may reduce the economic value of existing holdings.
Exit Risk
There is no assurance that portfolio companies will achieve a liquidity event (IPO, strategic acquisition, secondary sale, or buyback) within the stated investment horizon. Exit timelines may extend beyond 7 years. The Fund may be unable to return capital to investors if exit opportunities do not materialise.
Manager Risk
The performance of the Fund is substantially dependent on the investment judgment, expertise, network, and continued involvement of the team at Berries Financial Advisory Services. Departure of key personnel, conflicts of interest, or errors in investment judgment could materially adversely affect Fund performance.
Market Risk
Macroeconomic conditions — including interest rate cycles, inflation, currency depreciation, geopolitical events, credit market conditions, and public market valuations — significantly influence early-stage startup valuations, venture capital fundraising activity, and exit multiples. Adverse macro conditions may persist for extended periods.
Investor Eligibility — SEBI Accreditation Requirement
Investment in ArtVentures Fund is restricted exclusively to individuals and entities that qualify as SEBI Accredited Investors. This is a mandatory regulatory requirement and is verified during KYC. You must meet at least one of the following criteria:
Accreditation Criteria (Individual Investors)
Providing false or misleading accreditation information is a violation of SEBI regulations and may result in legal consequences, account termination, and mandatory reporting to SEBI.
Regulatory Information
+91-7400160348
This Risk Disclosure is prepared in accordance with Schedule II of the SEBI (Alternative Investment Funds) Regulations, 2012 and SEBI circulars issued thereunder. Investors are encouraged to review the complete Private Placement Memorandum (PPM) and seek independent legal and financial advice before investing.
Acknowledgment
By proceeding with an investment in ArtVentures Fund, you confirm that:
- ✓ You have read and fully understood this Risk Disclosure document
- ✓ You meet the SEBI Accredited Investor eligibility criteria
- ✓ You are investing funds you can afford to lose in their entirety
- ✓ You have obtained independent legal and financial advice as appropriate
- ✓ You understand that no regulatory authority has approved this offering or verified the accuracy of this document
For questions about this Risk Disclosure or to speak with our compliance team prior to investing:
Email: artventures.operations@gmail.com
Phone: +91-7400160348