How long is a Startup investment held? How liquid are these investments?
Investing in Startups is a long-term investment strategy (typically five years or more). By law, you must hold any equity crowdfunding investment for at least 12 months after the campaign closes. Even then, it may be difficult to find a secondary market in which this investment can be sold. Remember, these are early stage companies, and Investors usually hold these investments for years until the Startup reaches a successful exit (IPO, acquisition, etc.) or closes. We recommend that you always consider equity crowdfunding as long-term investments. They are much different from investing in the stock market or initial public offerings (IPOs). Learn m ore about how equity crowdfunding differs from the stock market.