EquityZen is a marketplace for private company investments. Our mission is to help shareholders in proven, private tech companies get liquidity for their illiquid company stock while giving investors access to this new asset class.
You are compensated in options and stock that can be quite valuable. Yet, as the company grows in size and success, your net worth is increasingly concentrated in illiquid, hard to value equity. From a risk and money management perspective, this is not prudent.
Additionally, over time real life gets in the way. You may need liquidity in order to address ordinary course life events, such as purchasing a home, preparing for the birth of a child, or paying down educational debt. We’re here to help.
We understand that you may need or desire liquidity before your portfolio company exits. If you hit your target IRR in 3-4 years time, you should not have to stay aboard for the 10-12 year ride to exit.
In fact, it’s not only better for you but for the economy. Everyone is better served if you take your returns and re-deploy those proceeds into new investments. Our platform provides you a way to do just this.
I am a client of EquityZen and am thrilled with my experience with the company.
EquityZen’s model leverages the intersection of crowd sourcing and private markets. It bridges a gap in the private equity markets and smaller investors. By allowing a group of investors to act as fund, EquityZen enables them to act as a larger buyer of private equity. This is key as it creates efficiencies across the entire investment process.
EquityZen’s model is so novel has the potential to disrupt the equity markets. Much as Uber revolutionized travel, EquityZen could very well redefine the private investment marketplace. It’s simply a brilliant approach for investors.
I highly recommend EquityZen and will being doing more transactions with them in the future.
^Specific customer experiences are not representative of all customer experiences and are no guarantee of future returns or success.
Traditional marketplaces are cumbersome. We make it easy.
Previous and current liquidity alternatives do not take the Company, a key stakeholder, into account.
We work directly with companies to facilitate company-approved transactions. We generally offer a traditional Share Transfer, which involves transferring your shares directly to an EquityZen fund vehicle.
Working directly with the company ensures that we’ve checked all boxes regarding regulation, compliance, and counterparty risk.
Under a Share Transfer, you would transfer your shares directly to an EquityZen fund vehicle. We will take care of the paperwork and help you communicate with the company. In return for your shares, the EquityZen fund would pay you today’s value for your shares (you need to own the shares outright prior to transacting).
The best part is you won’t deal with an assortment of investors on our platform. You have one counterparty: EquityZen.
You pay a one-time fee (a percentage of the transaction size) to EquityZen Securities LLC ("EquityZen Securities"). EquityZen Securities is an SEC-registered broker-dealer and member of the Financial Industry Regulatory Authority.
Believe it or not, the tax treatment is straightforward! For tax purposes only, both transaction structures on our platform are treated as a full disposition (sale) of the shares. There is no double taxation or any other funny stuff [more information on that here].
To learn more about whether you're eligible, typical investment size, company valuation, and share price, request membership here.
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