Early capital is the most important pool of money for a startup business and acts as a launchpad, taking the company to new heights. 
However, for any early-stage investor while this opportunity comes with some astonishing rewards it is also embedded with massive risks. There are many things that can go amiss while making an early-stage investment, leading to an imbalance in the reward – a risk equation. 
Factors like misjudgment, bad advice, lack of industry experience, a mismatch in expectations, the fear of missing out, faulty business models, unrealistic moon shots and peer pressure simply multiply the risk and add to this imbalance.