EquityZen

EquityZen

2.0

(1 Review)

Startups

EquityZen

EquityZen

2.0

Startups

EquityZen is an online marketplace where employees and other shareholders of private companies can sell. Accredited investors can gain exposure to private companies through an EquityZen-managed investment fund (Delaware LLC).

Join investors

Highlights

0 - 1,000%

Asset Class Return1Y

#23 Rank

In Startups30d

avatars

Invest from

$10K

Overview

The marketplace for pre-IPO equity. Invest in or sell shares of private companies via EquityZen Funds. EquityZen helps shareholders sell their equity for cash, with company approval, even while the company is still private. EquityZen believes employees and investors deserve the right to realize the value they have helped create. Until recently, access to pre-IPO companies has been limited. By leveraging technology and market expertise, their platform provides accredited investors access to pre-IPO, late stage technology investments at reasonable minimums via their investment funds.

Things to Know

  • You make money on

    Value

  • Fees

    5%

  • Min Investment

    $10,000

  • Payout frequency

    Asset sold

  • Term of investment

    12-60 months

  • Target Return

    Varied

  • Liquidity

    Hard

  • Open to

    Accredited Only

  • Mobile Application

    No

Top Perks

  • Diversified exposure to pre-IPO companies

  • Proprietary analysis including recent price history, valuation & cap tables

  • Source shares from early employees and investors looking for liquidity

How you make money

Accredited investors will own an interest in an LLC, which owns the underlying shares of a private company. If the company gets acquired or goes public, EquityZen will distribute shares or cash proceeds to you. Not all private companies will get acquired or IPO, and not all IPOs or acquisitions will result in successful investments.

How EquityZen makes money

EquityZen typically charges a one-time fee when you invest, from 5% of the invested amount (which is charged on top of the investment amount, so for example if you were to invest $50,000, you would end up transferring $52,500 to EquityZen).

Is it safe?

Investment opportunities posted on this website are "private placements" of securities that are not publicly traded, are subject to holding period requirements, and are intended for investors who do not need a liquid investment. Investing in private companies may be considered highly speculative and involves a high degree of risk, including the risk of substantial loss of investment. Investors must be able to afford the loss of their entire investment.

  • Established

    2013

  • Country Available

    US Only

  • Assets Managed

    n/a

How You’re Taxed

Capital Gains

Capital Gains

Income Tax

Income Tax

Profits earned from investing in startups are taxed like stocks. Investors are subject to short-term capital gains when selling investments held for less than a year, which are taxed at ordinary income tax rates. Long-term capital gains are applicable when investments are held for a year or more with tax rates ranging from 0% to 20%, depending on your total taxable income.

Reviews

2.0
  • 5

    0

  • 4

    0

  • 3

    0

  • 2

    1

  • 1

    0

Reviews (1)
C

Chris

Leader in the space with access to more and larger deals than most individuals would find, but their distribution mechanism has glitches and can wipe out investment returns entirely.

Related Reads

post-img
moneyMade

mone...

5 days ago

Rich Dudes │ How Shaquille O'Neal Built His $400 Million Fortune On and Off The Basketball Court
post-img
moneyMade

mone...

8 days ago

Rich Dudes │ Kevin O’Leary's $400M Net Worth, the 2nd Richest on Shark Tank

Similar Platforms

Explore Assets

Dogecoin
Music Royalties
Tether
Farmland
Wine
Art
Real Estate
Robo Advisor
Gold
Bitcoin
Stocks
Lending
Startups
Ethereum
DeFi
Solana
Oil & Commodities
Polkadot
Metaverse
NFTs
Whiskey
Bonds
Platinum
Sports Cards
Cardano
Ripple
Silver
Watches