Company failure is a real risk in private investing. Here's what happens if a company you've invested in goes bankrupt or shuts down: The SPV protects your liability, not your capital. Your investment is made through an SPV (Special Purpose Vehicle).
This means:
Your personal liability is limited to the amount you invested; creditors cannot come after your other assets
However, the money you invested may be partially or completely lost
What typically happens during a company failure?
The company enters liquidation or bankruptcy proceedings
Assets are sold or distributed to creditors (in priority order: secured creditors → unsecured creditors → preferred shareholders → common shareholders)
SPV investors are typically common shareholders — which means they are last in line for any remaining proceeds.
In most startup failures, common shareholders receive nothing — the company's debts exceed its assets
What Wealt does?
You'll receive a notification about the company's status change
Any residual proceeds (if any) will be distributed through the SPV
Final documentation and tax forms will be uploaded to your Vault
The investment will show updated status in your portfolio
How to protect yourself?
Diversify. Don't concentrate your wealth in a single deal. A well-diversified private portfolio can absorb individual losses because the winners compensate for the losers.