Why should I invest in private stock with no dividends?

With Title III of the Jobs act, we are seeing companies raising capital from crowdfunding. In many of these cases, they are selling private stock, and will not be paying dividends.

What is my incentive for investing in such a company? Is the idea that at some time in the future, I will be able to find another private investor who will be willing to buy the shares from me at a higher price than I paid for them? How does this stock become monetized?

Investing, Stocks
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July 2017
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You nailed the issue by asking about monetizing the investment. Without dividends, your only hope is that the company sells out at some future date and that all investors are rewarded. That's a big "if." It is probably more likely in some industries than others, but the general likelhood is low. Crowdfunding seems more to me like marketing than investing ... trying to make friends and customers feel part of a new venture. There is nothing wrong with that, but remember that investment prospects are low. Do it for fun, do it for prestige, do it for personal fulfillment. Don't do it for investment purposes.

July 2017
July 2017
July 2017
July 2017