What is the difference between investing in public companies listed on the stock market and private companies? 

Unlike companies on the stock market, companies raising capital on Equivesto are smaller private companies.  Companies on the stock market are older, have more experience, and are larger.  They also are mandated to meet several reporting requirements, including providing audited financial statements each year and financial statements each quarter (3 months).  Given their size and experience, these companies are more stable, and with the reporting, investors can know more about them.  Furthermore, because they are on the stock market, investors can sell their investment at any time. 

However, those same companies, because they are large, experienced, and older, are less likely to grow rapidly in value.  They already made their climb from a small, young company to a large successful one.  As a result, their stocks are not often expected to experience massive growth.

Private companies, like those on Equivesto, are the opposite.  They are small, new, inexperienced companies. They have much fewer (or no) reporting requirements.  There is a much higher risk that they will be unable to grow into a larger successful company.  They are not listed on a stock market, so investors will not be able to sell their investments whenever they choose, or potentially at all.  There is a chance they could fail entirely and go bankrupt. 

For these reasons, private companies can have much more potential.  Because they are small and new, their value is small, and that creates opportunity for ample growth in the future if they reach their goals. 

While they are much higher risk, it is for this reason that Equivesto has a minimum investment of $100.  Investors no long have to put up thousands of dollars to support these businesses, and our hope is that allows more people the opportunity to participate.