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Locked in? How to sell your shares in private businesses (businessZONE)

With growing numbers of private businesses looking to equity, rather than debt, to raise finance, entrepreneurs have to consider how they might offer share liquidity to their investors at a much earlier stage than ever before.

Providing shareholder liquidity is a problem shared by most private companies. Towards the end of 2013, the Financial Conduct Authority raised real concerns on this issue, specifically in relation to companies raising funds through the crowd. It mandates that companies using crowdfunding platforms to find shareholders should provide sufficient information about risk, the nature and performance of the assets invested in, as well as exit opportunities for investors.

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