However, if you opt to go the shareholder route, be sure to conduct extensive background research on the company. Ask how accurate financials are when it comes to meeting revenue. If the company recently laid employees off, have them explain why. The problem is individuals aren’t doing enough due diligence before investing.
Investors need to be wary and understand that — as with any public company — there’s risk involved. The valuation an investor is being sold is not necessarily the real-world result they’re going to see. Plus, with the shareholder model, the company could be sold or acquired. As such, an investor’s hands are tied to a certain extent, and there’s not as much security around the investment.
Terrapin Care Station - Denver, Colorado