1. Capital is at risk
When you invest, you typically acquire shares in a company. As with any business investment, companies can underperform or fail, potentially resulting in partial or total loss of capital.
Each investor is responsible for conducting their own due diligence and assessing whether an opportunity fits their risk profile.
2. Investments in private markets are less liquid than public markets
These types of investments are not easily sold. Even if the company performs well, it can take several years before a liquidity event occurs.
Returns usually occur when a company is acquired or goes public (for example, on the Bucharest Stock Exchange). Such events are possible, but not guaranteed and typically take time.
In order to address the liquidity needs of the investors Growceanu plans to create a secondary market in order to enable faster access to liquidity.