One of the most important things to know about crowdfund investment is that you must hold such an equity investment for at least 12 months from the time of purchase. By law, the equity investment is illiquid for the first 12 months.

The SEC sets rules about how your sale can be made, and what kind of private shares stock markets can be used for this purpose. In some cases, Seedrs, the crowdfunding platform open up their secondary market, enabling shares to be traded midterm.

The Seedrs secondary market is the place for investors to buy and sell shares from each other. This slick platform enables investors to exit early if they require to do so.

The year-long hold period disallows anything that looks like day trading and promotes a buy-and-hold investment philosophy.

To really reap the benefits from a crowdfund investment, you need to get in and sit tight. You won’t make a quick buck with this type of investment, but if you keep your eyes on the long-term prize, and ride the waves of volatility, you may reap some major rewards.

A great example, a major individual investor or a large business may purchase the company, the company may decide to float on the stock market, or you may simply collect very healthy dividends years to come.