I said it in a previous blog. And I will say it again.
Never, ever be pressured into investing in a private start-up. This is not a game for regular investors. Venture capitalists and investment banks lose billions and they have really smart people vetting the deals out. The vast majority of start-ups, probably in excess of 90% do not return a cent for their investors. There are just too many moving pieces that need to be perfectly aligned for a start-up to get to sustainability to get to saleability. Yes, there are diamonds in the rough but just like actual diamonds in the rough, the chances of you hitting one is in the realm of lottery odds. Continue reading →