Date Posted: 
Monday, March 12, 2018

The North American Securities Administrators Association (NASAA) is cautioning investors about pre-IPO investments in large privately held companies with supposed valuations of more than $1 billion and commonly referred to as “unicorns.” Investing in unicorns is speculative, and generally unavailable to retail investors.

The advisory discusses the risks of investing in pre-IPO companies, including fraud, as well as disclosure, liquidity and valuation considerations.

View The Full Advisory