That doesn’t even make sense. Many institutional investors invest directly to get maximum value and that kind of investment no matter the stage of the company is dilutive. However, when it delays dilution, it’s also a positive thing. Now if you mean buying secondary shares, that is not direct investment and since they are not on a major market like NASDAQ and are a penny stock, that is not their current issue.
However, investors who can invest in company’s not on a major exchange will, assuming approval, have the ability to accumulate at a substantial discount to ultimate value. And for some investors like me, this has meant volatility, but of course I remain solidly in the green, having been up more than 10 times my investment and now over 2 times my investment, and for institutional investors that are allowed high risk, comes high potential rewards like that.
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