---
title: What are the risks with investing in private companies?
description: Investing in private companies can be very risky. Investments made through Netcapital are generally illiquid with reselling restrictions.
---
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# What are the risks with investing in private companies?
## Investing in private companies can be very risky. Investments made through Netcapital are generally illiquid with reselling restrictions.
The companies currently raising on Netcapital are private companies. This means that investments made through Netcapital do not trade in the public markets and are thus illiquid with reselling restrictions. You should not expect to sell your shares immediately following the close of an offering and you should only invest an amount you are comfortable losing.
Due to these potential risks, there are some limits on investing. For instance, anyone can invest at least $2,200 per year in Reg CF offerings. Most investors are required to hold securities for at least one year from the date the securities were issued by the company.
To learn more about your potential risks, limits, and holding guidelines, please visit [our risks page](https://netcapital.com/risks) for further information.
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