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  • Introduction
    • ➡️What is alternative asset?
    • ➡️What is Hedonova?
    • ➡️What is our purpose?
    • ➡️Myths about alternative investments
      • 🛑Myth 1: It is only for high-net-worth investors
      • 🛑Myth 2: It adds risk to your portfolio
      • 🛑Myth 3: It is illiquid in nature
      • 🛑Myth 4: It is not a necessary part of portfolio
  • 1. Investing in ART
    • 🖼️How is art valued?
    • 🖼️Why people invest in art?
    • 🖼️Economics of art investments
    • 🖼️Why invest in art now?
    • 🖼️The Hedonova advantage
    • 🖼️History of art as an investment
  • 2. Investing in Carbon Credits
    • 🏭What are carbon credit and carbon offset?
    • 🏭History of carbon credits
    • 🏭How are carbon credits and offsets created?
    • 🏭What is the carbon marketplace?
    • 🏭Types of carbon market place
    • 🏭Economics of carbon market investments
  • 3. Investing in music royalties
    • 🎼What are music royalties?
    • 🎼Music copyrights v/s Music royalties
    • 🎼What are the different types of music royalties?
    • 🎼How do music royalties work?
    • 🎼Economics of the music royalties
    • 🎼Why invest in music royalties?
    • 🎼The risk associated with music royalty
    • 🎼Case Study: Taylor Swift’s re-recording of her old albums
  • 4. Litigation finance
    • ⚖️What is litigation finance?
    • ⚖️How does litigation finance work?
    • ⚖️History of litigation finance
    • ⚖️Economics of litigation finance
    • ⚖️Why invest in litigation finance now?
    • ⚖️Risk associated with litigation finance
    • ⚖️Case Study: PayPal’s co-founder and litigation finance
  • 5. INVESTING IN WINE
    • 🍷History of wine as an asset class
    • 🍷How wine investments work
    • 🍷How wine is valued
    • 🍷The Robert Parker wine rating system
    • 🍷Economics of wine
    • 🍷How wines from different regions have performed
  • 6. Investing in startups
    • 💸What is startup investing?
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    • 💸History of Startups
    • 💸Case study - redo
    • 💸Economics of startup investing
    • 💸Risks associated with startup investing
  • 7. Agricultural Investing
    • 🍫ESG Investing - a new theme
    • 🍫What is cocoa farm investing?
    • 🍫Replantation & Rehabilitation
    • 🍫Economics of cocoa farm investing
    • 🍫Ghana - an emerging exporter
    • 🍫Risks associated with cocoa farm investing
  • 8. Investing in cryptocurrencies
    • 🦾What are cryptocurrencies?
    • 🦾How does blockchain work?
    • 🦾History behind cryptocurrencies
    • 🦾Economics behind cryptocurrency
    • 🦾How does crypto investing work?
    • 🦾Risks associated with cryptocurrencies
    • 🦾Bitcoin Pricing Model - Z Score
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  1. 4. Litigation finance

Risk associated with litigation finance

PreviousWhy invest in litigation finance now?NextCase Study: PayPal’s co-founder and litigation finance

Last updated 2 years ago

It is important to keep the risks in mind before investing in litigation finance. One might end up losing all their money if there is a lack of prior knowledge.

Here are some risks associated with litigation finance:

  • Losing all your money if the claimant loses the case. This is a “non-recourse” investment. It means, either you win and get a good profit, or you end up losing all your money.

  • You might have to pay the successful opponent’s cost if the claimant is not able to do so.

  • The unpredictability of the result of a case may lead you anywhere.

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