You incur expenses when purchasing, more fees when selling, and face additional charges just to have the option to sell. If the Pre-IPO goes public, the risk of losing your investment is significant. While the company does state that they do not promise any profits, I wish I had heeded that warning. Comparing my stock market investments to this service, I see that my $25,000 would have nearly tripled in the market. In the traditional stock market, my $10,000 has grown to almost $50,000 without extra investments, while my nearly $30,000 with this service has barely exceeded $25,000—resulting in a loss of nearly all my investment due to a company folding (RXNOW sold its assets and closed down). The only party benefiting seems to be the service, which charges a fee to buy, a fee to sell, and mandates an annual membership of nearly $300 just to enable selling (previously free, now a strategy to retain users). My experience has shown no real gains for investors. If I could withdraw all my funds, I would. Currently, I face the choice of either paying the company for the chance to list my shares with no assurance of a sale, incurring additional seller fees even if I sell at a loss, or simply ceasing to invest and hoping for future returns—which hasn’t materialized in my years with this service. If the company made selling free, I would liquidate and move on, and I believe many other investors would too, which explains the difficulty in selling shares and the numerous fees involved. For investors, it feels reminiscent of a scenario where losing money is almost a certainty.
Claim your business profile now and gain access to all features and respond to customer reviews.
StartEngine is an equity crowdfunding platform that allows everyday people to invest and own shares in startups and early-stage companies. StartEngine has helped over 300 entrepreneurs raise over $125M in capital.
