Crowdfund Investing For Dummies

Chapter 18

Exiting a Crowdfund Investment

In This Chapter

Thinking about your end goal when you invest

Understanding the controls and safeguards on crowdfund investments

Hoping for an IPO or merger — or not

Is this the chapter where we tell you how to get rich quick? No! It is not! Instead, this is the chapter where we help you think ahead regarding how you want to cash in on your investment.

As we hammer home in Chapters 15, 16, and 17, you need to make careful, informed decisions about where to invest reasonable amounts of your money in private companies. You need to commit yourself to long-term investing (a minimum of 12 months, per the JOBS Act, if you’re an equity investor). Finally, you need to think proactively about what kind of outcome you desire. Do you intend to hold on to your investment indefinitely? Are you going to hold for exactly 12 months and then move on? Will you sell only when the company reaches a certain level of success (or bail out when it hits a certain level of failure)?

Only you can make the decision, but it’s well worth considering even before you invest. Just as you set goals for yourself in other aspects in your life, you should think about what ...