You’re an investor in private companies and looking to cash out your gains. How can you sell your shares? The key lies in creating a marketplace for private investment with public market standards. Alternative investors typically face two challenges: time and exposure.
Time is crucial because many investors acquire restricted stock under Rule 144, which allows free trading after two years, pending company approval to remove the restriction. Once cleared, exposure becomes the next hurdle.
Consider your initial stock purchase. A relationship or publicity likely provided the credibility needed to invest. Selling follows the same principle: effectively communicating the company’s credibility to potential investors.
While trillions are available for alternative investments, connecting with those investors is your responsibility. Company leadership plays a vital role in expanding exposure by providing information to the financial community and fostering transparency. Leaders must clearly articulate the investment opportunity – the ‘who,’ ‘what,’ and ‘why now.’
The alternative market is primed for investment. By adhering to established reporting standards, private companies can enhance the visibility, valuation, and liquidity of their shares.