Shareholders: A step by step to selling on EquityZen

1. Register as Shareholder

You’ll create an account as well as complete our on-boarding form so we can best address your specific situation.

2. Conducting Diligence

EquityZen will perform initial due diligence on the company in which you are seeking liquidity. If the company is an appropriate fit for our investor base, we will ask you to provide a list of documents we need to review to complete our standard diligence. You can upload the documents anytime here for us to get started. We will not ask you for sensitive, non-public company information. Your equity documents will be reviewed to:

  1. verify your ownership and
  2. ensure that your participation on our platform does not run afoul of agreements you have in place with the company.

As the diligence process moves forward, EquityZen will perform a valuation analysis on the company. We use this along with publicly available information, comparables, and other market data to initiate pricing.

3. Generating Investor Interest

We will list the offering to gauge interest from our investor base and report back to you. This process typically takes two weeks, and the listing will be featured on our website and in our weekly investor newsletter during such time.

If there is enough buyer demand and if we are in agreement on the core terms (size and price), we’ll enter into a letter of intent with you, formalizing our mutual intent to complete the transaction.

4. EquityZen Works with the Company

With the deal terms in-hand (price, number of shares, and deal size), we will provide you with the language and documentation necessary to notify the company of your intent to sell your shares through a share transfer. We will then work with the company through its internal processes to complete the transaction.

5. Completing the Transaction

You will generally be asked to sign a Share Transfer Agreement to consummate the transaction [more information on that here - FAQ].

You will also be asked to sign a placement agreement and submit a one-time placement fee to EquityZen Securities LLC ("EquityZen Securities"), our SEC-registered broker-dealer.

We usually close (i.e., money hits your account) in 2-3 weeks from receiving company approval on the transaction.

6. Be a hero, tell a friend

Psst. Share this secret with a friend, and help them get liquidity too.

*EXERCISE OF OPTIONS

If you are an Option Holder, you will be required to exercise your options before we can move forward. We do not provide a loan nor do we provide funding to cover the cost of exercise. Instead, we will enter into a Bona Fide offer with you, formalizing our commitment to a transaction, so that you may exercise with confidence that a transaction will follow.

*COMPANY TRANSFER FEE AND LEGAL OPINION

Depending on the Company you hold shares in, you may be required to submit a one-time transfer fee and legal opinion to the company in order to transact. This is required by the Company, not EquityZen, in order to meet their transfer requirements.

*PLACEMENT FEE

Submit your one-time placement fee to EquityZen Securities. We will send individual instructions.

Still Have Questions?

Unclear about a specific step? Chances are our FAQ can clear it up. We're happy to discuss anything that's on your mind.

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