Primary equity investments in private placements, and start-up investments in particular, are speculative and involve a high degree of risk and those investors who cannot afford to lose their entire investment should not invest in start-ups. 

Investors may receive illiquid and/or restricted stock that may be subject to holding period requirements and/or liquidity concerns. Investments in startups are highly illiquid and those investors who cannot hold an investment for the long term (at least 5-7 years) should not invest.