How do I make a return on my investment?

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: 

  1. 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.
  2. 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. 
  3. 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.