Public and private markets are fundamentally different investment environments. Understanding these differences will help you set the right expectations.
Why do investors choose private markets?
Access to high-growth companies before IPO
Portfolio diversification beyond stocks and bonds
Potentially higher returns (compensating for illiquidity risk)
Less exposure to daily market volatility
Why are private markets riskier?
You could lose your entire investment
You can't sell when you want to
Less information means less transparency
Harder to value your holdings accurately