EquityZen

Access of sell shares of private companies through our funds

12 followers

Access of sell shares of private companies through our funds

12 followers

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EquityZen's mission is to improve the way startup employees are paid by unlocking the value of their equity compensation in a way that benefits all key players: the shareholder, the company, and the investor.

Launch tags:Fintech

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CryptoPoops

So is it essentially some legal magic where investors pay for a contract with the equity holder in exchange for money up front? (Investor gets rights to all profits in the event of a sale, but equity doesn't actually change hands until a change of control/liquidity event as usual?)

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12yr ago

CollageMo

This sounds great. Guessing the company needs to OK this before employees do this, or is it not needed b/c you're not actually selling your shares? Also, didn't hear SecondMarket was making a move to bitcoin stuff - I thought they were still doing a similar thing?

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12yr ago

Hunter

@staringispolite : yes, pretty much. I discussed it with my uncle, who works for the London stock exchange. He said how they would refer to it is that you're trading on a derivative of the stock; rather than magic ;)

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12yr ago

EquityZen

Maker

@staringispolite @_jacksmith No derivatives here!

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7yr ago

Hunter

These guys are really awesome. Tackling a big problem (lack of options for generating liquidity in pre-IPO companies). There used to be things like SecondMarket, but that is now completely flopping (pivoting to do something in bitcoin I heard), as companies don't want random people on their cap table. I think EquityZen has the potential to be huge in the future.

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12yr ago

Product Hunt

@KristoferTM - I won't pretend to know much about this but most companies have a right of first refusal (and probably other terms) to prevent employees from selling outside the company. I'm interested to learn more about this though.

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12yr ago

@KristoferTM - While the shares aren't being transferred, we still require company involvement. Also, more questions are available on our FAQ page (link is above). Thanks!

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12yr ago

Hunter

@KristoferTM looks like bitcoin link in the top right of secondmarket. But basically I hear their struggling, as no private company wants anonymous random people on their cap table, getting voting rights etc.

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12yr ago

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