Understanding your investment: What you're purchasing
When you make an investment on EquityZen, you are purchasing ownership in an EquityZen fund that owns the shares of the company. You will not own the stock in the company directly.
Investors join this fund (organized as an LLC) as Limited Partners. This fund will purchase and own a specific company's shares. Shares owned by the fund will be fully vested stock and not options.
EquityZen will act as the Managing Member of this LLC fund, and the fund will be a single new entrant on the company's cap table.
Who are you buying these shares from?
Our sellers are current and former employees, early investors and advisors of the company. They are typically selling only a portion of their holdings in order to cover costs associated with exercising and paying taxes on the remainder of their shares, for life events such as purchasing a home or preparing for a child, or to diversify their holdings.
Do I own the stock in these companies?
No, you'll be a member of an LLC that owns the shares of the company.