It is possible, but not guaranteed. Investing in private companies is risky.
In general, there are three ways you can earn a return on your investment:
- Securities purchased on Netcapital’s Funding Portal may be able to be transferred to other investors using the Secondary Transfer Feature (STF). You can read more about that here.
- The company you invest in may be acquired. When this happens, investors may receive a pro-rata share of the sale price, which is determined on a case-by-case basis.
- The company you invest in may go public. In this case, the securities you purchase may be listed on a public exchange and you can sell them on public markets.
Unlike public stock, private securities are illiquid with reselling restrictions, including a one-year holding guideline. We recommend you read our educational materials for more information.