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#EQUITYZEN REVIEW REDDIT FREE#

To invest with EquityZen you must meet the SEC’s criteria for accredited investors. Investors are expected to put down no less than $10,000 for an EquityZen pre-IPO purchase.

You have a net worth of at least $1 million, alone or together with your spouse, excluding the value of your primary residence.

You and your spouse earned over $300,000 in each of the last two years and expect the same for this year.

You earned over $200,000 in each of the last two years and expect the same for this year.

To be considered an accredited investor, you must meet one of the following criteria set by the Securities and Exchange Commission (SEC): Deals typically close two to three weeks after company approval and a 5% transaction fee applies when the deal closes.Īfter the deal closes, equity ownership is transferred to EquityZen and you’ll receive a cash transfer to the external account of your choice.

You’ll need to come to an agreement with EquityZen on the number of shares you’re prepared to offer and at what price. And if there’s enough investor demand, EquityZen enters into a Placement Agreement with you to iron out the details and finalize the transaction. If everything checks out, your equity is listed on the EquityZen marketplace. Shareholders are asked to sign a non-disclosure agreement and provide shareholder documents so EquityZen can perform its due diligence and confirm equity ownership.

#EQUITYZEN REVIEW REDDIT FREE#

How EquityZen works for shareholdersĮquityZen purchases equity in privately-funded companies from shareholders looking to liquidate their investments and free up some cash. This is EquityZen’s managed portfolio option, offering exposure to 4 to 25 companies with a single investment. You can also buy into a pre-populated portfolio hand-picked by the EquityZen investment team. If the company is acquired or goes public, shares are distributed to your brokerage account or cash is deposited to your bank account. Minimum investments start at $10,000 and holding periods for single-company investments typically span two to five years. Instead, investors buy into EquityZen funds that purchase shares on their behalf. And you can’t purchase shares of the pre-IPO companies you’re interested in - at least not directly. To invest through EquityZen, you need to be an accredited investor. EquityZen solves this problem by offering cash in exchange for equity in privately funded companies.

It can be difficult for shareholders to liquidate their investment when a company isn’t publicly traded. But EquityZen opens up the floor to public investors as long as they meet the platform’s investment minimums and criteria.ĮquityZen also purchases shares from shareholders holding equity in privately-funded companies. Investing in pre-IPO companies is typically limited to company employees and insider traders. All international money transfer servicesĮquityZen is an online platform that allows retail investors to invest in companies before they go public.Best debt consolidation loans of September 2023.