❌ Top 5 Mistakes to Avoid When Investing in Unlisted Shares

Summary: Unlisted equities can be lucrative—but pitfalls abound. Here are the five most common mistakes and how to sidestep them. 👍

1. Skipping Thorough Due Diligence

Don’t rely solely on pitch decks. Dive into financials, legal docs, and competitive analysis first.

2. Overpaying on Hype

Beware FOMO in startup circles. Stick to valuation frameworks, not round valuations or social buzz.

3. Ignoring Exit Timelines

Clarify lock-in periods and realistic IPO or buy-back horizons—illiquidity can tie up capital for years.

4. Underestimating Concentration Risk

A single‐name private-equity bet can blow your returns off course. Limit unlisted exposure to 5–10% of your net worth.

5. Failing to Monitor Governance

Without strong board practices or minority protections, you may lack recourse against mismanagement.