Be prepared to miss big returns, read the investment docs
I invested in Spacex through MicroVentures more than 6 years ago, but I am not a happy customer when it is having a huge IPO. Why?
The fund I invested in was sold years agoâright when the company's valuation started to take off. As a result, I missed out on much of the upside. And I think the fund was sold at far lower than the market value. I donât know exactly who captured most of the profits, but it certainly wasnât me as an early investor who took on the initial risk.
To be fair, the investment documents does state the fund could be sold at any time. However, in practice, this creates a situation where fund managers or intermediaries can exit earlyâpotentially capturing gainsâwhile investors lose exposure to future growth.
If youâre considering investing through MicroVentures, make sure you fully understand the terms. Be prepared for the possibility that your investment could be sold without your control, even if the companyâs long-term prospects look very strong.
UPDATE:
The founder of MicroVentures reached out, which I appreciate (and is why Iâm giving two stars). That said, it doesnât change my concerns about the underlying issues with this type of investment. In my experience, broad public market investing has delivered better returns.
Iâm open to being proven wrong. But until I see a meaningful number of investors on the platform achieving 30x, 50x, or 70x returns from SpaceX, I remain skeptical.








