IPO / crowdfunding: risk

Pre-entry evaluation checklist

Company is profitable or has a clear path
Clear business model and market
Underwriter is a known bank, not a no-name
Reasonable lockup (90–180 days)
Founders keep a large stake post-IPO
Valuation reasonable vs sector (P/S, P/E)
Ready to hold 3+ years or lose part
It's ≤5–10% of your portfolio

Score0%

High risk — most flags unchecked

Most IPOs trade below issue price in year one. Crowdfunding is riskier still: near-zero liquidity and the company may never go public.