{"id":897717,"date":"2021-01-16T11:12:20","date_gmt":"2021-01-16T16:12:20","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?p=897717"},"modified":"2025-10-16T18:11:48","modified_gmt":"2025-10-16T22:11:48","slug":"equityzen-review","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/investments\/equityzen-review","title":{"rendered":"What is EquityZen and is it available to Canadian investors?"},"content":{"rendered":"
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\n \n \n <\/path>\n <\/path>\n <\/svg>\n <\/span>\n Must read: Can Canadian investors use EquityZen?<\/span>\n <\/h4>\n
\n Yes, investors from outside the US can use EquityZen. However, due to Canadian investment regulations, Canadian investors may not be able to access every security available on the platform. Note that you have to be an retail investor to use EquityZen. If you\u2019re looking to buy securities for your personal investment portfolio, you\u2019ll have to explore other brokerages<\/a>.\n <\/div>\n <\/div>\n<\/div>\n

Note: Unless otherwise stated, all dollar amounts on this page are in US dollars.<\/em><\/p>

What is EquityZen and how does it work?<\/h3>

EquityZen is an online platform that allows retail investors to invest in companies before they go public. Investing in pre-IPO companies is typically limited to company employees and insider traders. But EquityZen opens up the floor to public investors as long as they meet the platform\u2019s investment minimums and criteria.<\/p>

EquityZen also purchases shares from shareholders holding equity in privately-funded companies. It can be difficult for shareholders to liquidate their investment when a company isn\u2019t publicly traded. EquityZen solves this problem by offering cash in exchange for equity in privately funded companies.<\/p>

What is an initial public offering (IPO)?<\/a><\/p>

How EquityZen works for investors<\/h4>

To invest through EquityZen, you need to be an accredited investor. And you can\u2019t purchase shares of the pre-IPO companies you\u2019re interested in \u2014 at least not directly.<\/p>

Instead, investors buy into EquityZen funds that purchase shares on their behalf. Minimum investments start at $10,000 and holding periods for single-company investments typically span 2-5 years. If the company is acquired or goes public, shares are distributed to your brokerage account or cash is deposited to your bank account.<\/p>

You can also buy into a pre-populated portfolio hand-picked by the EquityZen investment team. This is EquityZen\u2019s managed portfolio option, offering exposure to 4 to 25 companies with a single investment.<\/p>

How EquityZen works for shareholders<\/h4>

EquityZen purchases equity in privately-funded companies from shareholders looking to liquidate their investments and free up some cash. Shareholders are asked to sign a non-disclosure agreement and provide shareholder documents so EquityZen can perform its due diligence and confirm equity ownership.<\/p>

If everything checks out, your equity is listed on the EquityZen marketplace. And if there\u2019s enough investor demand, EquityZen enters into a Placement Agreement with you to iron out the details and finalize the transaction. You\u2019ll need to come to an agreement with EquityZen on the number of shares you\u2019re prepared to offer and at what price. Deals typically close 2-3 weeks after company approval and a 5% transaction fee applies when the deal closes.<\/p>

After the deal closes, equity ownership is transferred to EquityZen and you\u2019ll receive a cash transfer to the external account of your choice.<\/p>

What is an accredited investor?<\/h4>

To be considered an accredited investor<\/a>, you must meet one of the following criteria set by the Securities and Exchange Commission (SEC):<\/p>