Investing on EquityZen: Step-by-step process
1) Verify your Accredited Investor Status
EquityZen provides access to pre-IPO companies via single-company and multi-company investment offerings. In order to invest in EquityZen's offerings through an EquityZen fund, you will need to be an Accredited Investor, per the SEC definition.
Simply sign up and verify your accredited investor status.
2) Browse Companies & Indicate Interest
Unlike a stock market, shares aren’t always available. However, enter a desired investment amount on the company page, and when we source shares that can be bought, we’ll let you know. No longer interested? Manage your indications from your watchlist. EquityZen offers investments in single-company and multi-company funds.
3) EquityZen sources shares and confirms demand
Keep your demand up to date, or reconfirm it when we gauge interest in the company via our Preview offerings. Once we have enough demand, we’ll work on launching the offering so that you can invest!
4) Invest in Live offerings!
We launch new deals on Tuesdays and Thursdays at 12pm Eastern Time. Review the offering details, make a reservation, and complete the investment paperwork. We won’t require funds right away. You can track the investment process from your Portfolio page.
For more information on getting started with EquityZen, we suggest checking out our knowledge center and the four-part intro series on Private Market Investing.
What's the minimum investment size?
Investors on EquityZen are eligible to make investments at a minimum of $10,000.
Reduced $10,000 minimums may not be available for all offerings. Please see the fund offering documents for details.
Are there investment fees?
You will be charged a one-time sales fee through EquityZen Securities LLC. This fee generally scales based on the size of your investment.
Investments up to $500,000 will be charged a 5% fee; investments of $500,000 up to $1 million will be charged a 4% fee; and investments of $1 million and up will be charged 3%. For example, if you were to invest $50,000, your total wire would be $52,500 ($50,000 + 5% x $50,000).
Typically, EquityZen does not charge Carried Interest nor a recurring management fee on non-actively managed funds. From time to time, EquityZen may offer different fee structures. Please see your fund's offering document and legal documents for details.
EquityZen Securities LLC is a SEC-registered broker-dealer and member of the Financial Industry Regulatory Authority. The sales fee is subject to partial or complete waiver by EquityZen Securities LLC and/or its affiliates.
Are investment fees negotiable?
The fee structure is set, and the terms must remain the same for all investors in a given fund.
When can I expect my investment to be completed?
Once we receive full commitments from investors, we will stop accepting allocation and will approach the company with our deal terms. The company has a Right of First Refusal, which allows them a thirty-day (typically) period to purchase the shares on the same terms as our offer. This can be longer, depending on the specifications of each company. You can typically expect a transaction to close 8-11 weeks from the time we "close" our fund and stop accepting investor commitments.
By submitting your Term Sheet, you agree to complete the investment process within one week of being informed by email that it is available to be completed. In the event you do not complete it within one week of notification, your investment allocation may be reallocated to another investor, and you may be charged a $500 termination fee.