Well, gains from investing in startups can be in various ways. If you’ve invested in the right startup that has picked the market and creating buzz around, you can cash out in any way you want, i.e.:
- If the startup is acquired by another company (like Instagram was taken by Facebook), you will have stocks in a bigger name and the stock values can go further high which you can cash out any time.
- If you have invested in an early stage startup, you may cash out when the startup goes IPO.
- You can also cash out as the company begins paying dividends.
- As an investor, you can also sell your shares to other investors.
