Sudden Wealth Risk Shield: Due Diligence & Capital Allocation Forensic Simulator

Overall Venture Risk Score

94 / 100

Catastrophic / Severe Fraud Risk

Capital Concentration Exposure

100%

100% of Total Liquid Net Worth at Risk

Post-Loss Living Runway

0 Months

Immediate Insolvency on Venture Collapse

Recommended Fiduciary Action

Immediate Deal Rejection

Retain Independent Legal & Fiduciary Counsel

1. Venture Details & Capital Scale Live Stress Testing

Venture Name / Entity

Venture Model

Liquid Savings ($ USD)

Capital Commitment ($ USD)

Annual Living Burn ($ USD)

Claimed Annual ROI (%)

2. Legal & Custody Safeguard Verification

Independent Third-Party Escrow Custody Funds disbursed conditionally against milestones vs sent directly to founder/LLC

Audited Financial History (CPA 2+ Yrs) Verified balance sheets and tax returns independently audited

Unsecured Promissory / Personal Guarantee Only Zero senior secured asset liens (UCC-1), leaving investor completely unbacked

Unregulated Intermediary / Finder Commissions Promoter receiving undocumented kickbacks or upfront syndication cuts

3. Capital Exposure & Concentration Sandbox Critical Hazard

Capital Allocation Breakdown 100% Invested / 0% Cushion

At-Risk Venture Capital ($500,000)

Remaining Liquid Cushion ($0)

4. Forensic Red Flags Detected 4 Critical

5. Prudent Institutional Rule vs Current Pitch

Metric	Current Proposal	Prudent Athlete Standard
Max Allocation Cap	100% of Savings	5% - 10% ($25k - $50k)
Emergency Runway	0 Months	36 - 60 Months ($270k+)
Custody Structure	Direct Wiring (No Escrow)	Third-Party Institutional Escrow

6. Mandatory Legal & Fiduciary Inquiries

1. "Provide 24 months of audited corporate tax returns and operating bank account statements."

2. "Can we execute a UCC-1 security agreement giving senior collateral rights over inventory/hardware?"

3. "What FINRA broker-dealer or registered RIA is supervising this investment offering?"