Investors Knowledge Base

How liquid are my investments?

Startup investments are a long-term investment strategy (typically five years or more). During that time, they are not liquid in most cases. 

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 more about how equity crowdfunding differs from the stock market.