With illiquid/unlisted stocks it is not so much about risks but transaction costs. It requires much more work to purchase the stocks, and often you need also lawyers.
From stock market investors seem to happy to be paying a lot for companies that are unprofitable or turn out only small profit. For unlisted companies, if you are willing to scout around you will find profitable companies where employees are holding stocks that they don't really see much value in - or they would prefer to have cash in hand instead of the future dividends. For smart investors who are willing to do a little bit of snooping, leg work and negotiations, these situations can be sometimes quite fruitful.
From stock market investors seem to happy to be paying a lot for companies that are unprofitable or turn out only small profit. For unlisted companies, if you are willing to scout around you will find profitable companies where employees are holding stocks that they don't really see much value in - or they would prefer to have cash in hand instead of the future dividends. For smart investors who are willing to do a little bit of snooping, leg work and negotiations, these situations can be sometimes quite fruitful.