The risks of being a small investor in a private company

Thursday, April 26th, 2012

I’m all in favor of the recently-passed JOBS act, which loosens restrictions and regulations on investing in small companies. But, the downsides are obvious.

Human nature dictates that a lot of people are going to get conned. Some of my older readers may remember grifts from the sixties, seventies and eighties — the details change, but the story doesn’t.

Entrepreneur and investor Chris Dixon gives a good run-down of some of the risks. It’s worth a read.

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