What happens if a company I invested in goes public or is acquired?

Companies cannot simultaneously participate in equity crowdfunding and be public, so this means all companies that are raising funds on StartEngine are private companies that are not currently traded on public exchanges like the NYSE or NASDAQ.

Investments in startups are long term (5-10+ years), high risk, and illiquid as there is not an established market for private securities, so there is no guarantee you will receive a return on your investments or that the company you invested in will IPO, merge, or be acquired.

In the event that a company you invested goes public (IPO), merges, or is acquired, the company and/or their transfer agent would reach out to you directly to assist with any necessary transfers or payouts.

It is vital to review the terms of the offering and the securities you are investing in to understand how an exit event might impact the investment and the securities you receive.

Related Articles

Recently Viewed Articles