EquityZen, a top secondaries trading platform for private securities, has lowered its investment minimum to just $5000.00 for specific offerings.
EquityZen is a marketplace where smaller investors may access securities of promising private firms. Frequently, insiders or early employees want to sell some shares and capture a level of liquidity prior to an exit opportunity like an IPO. EquityZen is where sellers are paired with buyers who see an opportunity to capture gain before a public offering or acquisition. Listed opportunities include well-known tech names with significant growth potential.
In a blog post, EquityZen explains:
“Investment minimums on EquityZen’s marketplace are established for each deal before it goes live. These minimums typically range from $10,000 to $20,000. However, to increase accessibility, we offer a limited number of opportunities to invest $5,000 for certain deals. These lower investment minimum slots are allocated on a first-come, first-served basis, determined by when investors complete their term sheets. If you’re interested in making a $5K investment in a given company, if available, make sure to sign a term sheet for that fund.
Our goal is to offer $5,000 investment minimums to as many investors as possible.”
EquityZen claims to be offering the lowest minimum in the market of private securities available for Accredited Investors.
EquityZen has also added a new feature called “Bids.”
Just like the name implies, Bids allow an investor the ability to communicate with a seller and share a price where they would buy. The company expects Bids to boost market efficiency while increasing deal activity.
