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What happens when a business I've invested in shuts down?
What happens when a business I've invested in shuts down?

Information about bankruptcies, closing businesses, and shutting down operations after hosting a fundraise on Mainvest.

Isabel Strobing avatar
Written by Isabel Strobing
Updated over a week ago

When a business has indicated to Mainvest that operations have shut down, that business will appear as “Closed” in the investor portfolio, as well as in the repayments table. This can mean many things and does not necessarily mean that no future repayments will be sent to investors, however it does mean that the business is no longer making revenue.

Once a business stops generating revenue, the business may decide to enter bankruptcy proceedings. This may or may not result in repayments as the business liquidates assets.

Please keep in mind that the debt to Mainvest investors is fully subordinated, meaning that any loans taken by the business have priority in being fully paid back before Mainvest investors. Additionally, the Mainvest debt is not personally guaranteed, meaning that the individual business owner is not usually liable once the debt is fully discharged.

As the business works through the logistics of shutting down operations and recouping funds for its lenders, investors can reach out via the discussion section for updates from the business owner.

Lastly, any patience you can practice when dealing with business owners will be very appreciated, as nobody wants to shut down their business and let their investors down.

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