Private Markets 101

Public markets are continuous, liquid and heavily disclosed. Private markets are none of those things. When you buy shares in a public company you can sell them the same afternoon at a quoted price. When you participate in a private round, your position may not become liquid for years, and in many cases never does.

That difference drives everything else. Private companies raise capital in discrete rounds rather than continuously. Pricing is negotiated rather than quoted. Information is shared selectively rather than filed publicly. Investors accept illiquidity and information asymmetry in exchange for the possibility of buying into a company before the broader market can.

Understanding that trade clearly is the first step. Private investing is not a better version of public investing. It is a structurally different activity with a different risk profile, a different time horizon and different eligibility rules.