Liquidity Issues and Crowdfunding Exit Strategies

Everyone’s always on the lookout for the next great investment. But what happens if you find it, but can’t get your money out on your own terms? That’s a huge issue for many investors who seek to participate in crowdfunding offerings. In this podcast, Mike Brette from Small Cap Equity Advisors goes over some important exit strategies you should be aware of and questions that need to be answered before taking the investment plunge into a deal that may tie up your cash way longer than you had expected. And once again, due diligence is key!

Listen to “Liquidity Issues and Crowdfunding Exit Strategies” on Spreaker.

Due diligence is crucial and includes researching everything you can about a specific crowdfunding offering. What’s the syndicator or sponsor’s track record? Do they have a good team around them? Have they spent money wisely in the past on similar deals? How long exactly will your money be tied up? But most importantly, understand the exit strategies of a particular deal before entering into that deal. Don’t just rely on a sponsor’s pitchdeck (which pretty much only highlights the good points of an opportunity – make sure you read the actual PPM and associated documents as well, where the devil may be found.

The emergence of secondary markets may alleviate the pains many investors currently have regarding liquidity, but until that happens, investors probably have to come to terms with the fact that they most likely won’t be in control of a timetable regarding the return of their money, even in the best of deals. Even if you’re experienced, both as an issuer and an investor, it never hurts to seek guidance to avoid mistakes that may have been prevented. After listening to Mr. Brette on this podcast, you’ll understand why it’s so important to look closely at the deal structure and terms and understand it’s probably wise to make any investment decision with discretionary money that you can afford to lose (or wait for at a later date). Always remember: if you can’t get out, beware of getting in – unless you’re the one making the rules.

Contact Mike by phone at 951-236-8473 or by email here for more info on how his new fund can help solve your capital raising issues. In addition, you can visit his website at

You also may be interested in reading his published books: Raising Capital for Your Business (part 2 is in process and should be available soon) and Asset Protection Planning: How to Protect Yourself from Lawsuits


Michael N. Brette, J.D. advises clients on a wide variety of transactional business matters from startup consulting, Equity Crowdfunding, 506(c) private placement, REG A+ offerings, capital formation, going public, arranging capital for publicly traded companies.

Mr. Brette has published two books Asset Protection Planning and Raising Capital For Your Business ( Amazon ). He has appeared on more than 450 TV and radio shows discussing various business and financial topics. He has a Juris Doctor ( law degree ) for 42 years and is listed in Who’s Who in the World and Who’s Who in Industry & Finance.

All information provided is for informational purposes only. Mapable USA is not a registered broker-dealer, funding portal, or investment advisor. This information presented on this website/podcast is not intended as legal or investment advice for anyone to make an investment in any particular company and is not intended for any companies to rely on this information to form an opinion to go public or not to go public or to do any type of offering of securities. Any information presented is not an offer or solicitation to purchase or sell any securities or financial products. None of the information on the Mapable USA podcast or website takes into account any individual person’s personal objectives, financial situation, needs, or particular circumstances. You must check with a securities attorney to find out if an offering is for you, or if you are going to be in the business of selling any type of securities, you need to make sure you are following your state and federal legislative law so you do not get into any troubles. Do not use the opinions as stated on this show as any way to form an opinion as what is wrong or right or what could be done for your business or as an investor. Mapable, LLC recommends you obtain your own financial, legal, and taxation advice before making any financial investment decision.