An investment in a private company is typically a very illiquid investment and there may not be a market to sell your securities. You should be prepared to hold on to your investment for years and prepared to accept the risk that if the company doesn’t succeed, you will not be able to sell your investment.
Securities purchased in a Regulation Crowdfunding transaction generally cannot be resold for a period of one year, unless the securities are transferred:
- to the issuer of the securities;
- to an “accredited investor”;
- as part of an offering registered with the SEC;
- to a member of the family of the purchaser or the equivalent, to a trust controlled by the purchaser, to a trust created for the benefit of a member of the family of the purchaser or the equivalent, or in connection with the death or divorce of the purchaser or other simlar circumstance.
Transferability is limited and may not be available.
Securities sold in a Regulation A+ offering to non-affiliates of the issuer can be traded, but there may not be a liquid market for the securities.