When you invest in a Single Company deal on EquityZen, you are purchasing ownership in an EquityZen fund that owns shares of a specific private company or an interest in a third-party fund that holds shares of a specific private company at a designated price per share.
Investors then own their pro-rata right to the shares of that company owned by the fund. Each Single Company fund is a special purpose vehicle (SPV) structured as a Delaware limited liability company (LLC) that is established to purchase and hold a single asset: shares of a specific private company.
This fund structure is designed to protect investor ownership rights to the shares of the specific private company held by the Single Company fund. This ownership is formalized through the Subscription Agreement and related transaction documents that you sign when you complete the investment process, all of which are accessible on your Portfolio page.
Who are you buying these shares from?
Our sellers are typically current and former employees, early investors, private funds and advisors to the company. In many cases, these shareholders are selling only a portion of their holdings in order to cover costs associated with exercising and paying taxes on the remainder of their shares, to finance life events such as purchasing a home or preparing for a child, or to diversify their investments.