Whether it’s 5% or 10%, it should be something that you can manage losing. Different people will have different risk profiles, but clearly you don’t want to risk a high percentage of your wealth in any one company. You should go into this with the intent of investing in more than one company, because any one company is very high risk. By the way, you should have a legal advisor who is familiar with the securities laws and who can explain your rights and nonrights as an investor. You need to understand all the terms and conditions of the contracts you’re going to sign.
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