EquityZen Review

EquityZen Broker Review 2024

7 min read

EquityZen Review: They are a unique New York-based brokerage, part of a growing group of alternative online investment and crowdfunding platforms. It offers its retail users venture capital opportunities to invest in privately held companies. These are late-stage but pre-IPO investments with significant upside potential. For this, you must be an accredited investor with a minimum deposit of $10,000. Each investment requires a minimum of $10,000. Additionally, investors must know that their funds will be locked for two to five years, and such assets have low liquidity. This EquityZen review may be your place if you are in this market.

EquityZen Website Review

Yes, EquityZen is a legitimate company. Unfortunately, you can’t trade them on the stock market. However, their concept is pretty neat. They’re an alternative brokerage. In this EquityZen review, we found they’re a place to find pre-IPO companies. In other words, companies aren’t trading on the stock market yet.

Remember that a company that hasn’t IPO’d yet is not necessarily the best investment. So you may want to wait to see how the company does when live. Or be ready to sit through a rollercoaster. Just look at Uber.

EquityZen’s online platform allows retail investors to find pre-IPO companies for investment, usually only available to insiders and employees. These investments are still only available to those meeting specific required criteria. EquityZen can do this by purchasing shares from current company stakeholders (who pay EquityZen a 5% fee and receive cash). Not publicly traded, these shares are generally illiquid; EquityZen pays the shareholder cash and then resells the shares to EquityZen retail investors. 

Day Trading Course Options Trading Course Futures Trading Course
DESCRIPTION Learn how to read penny stock charts, premarket preparation, target buy and sell zones, scan for stocks to trade, and get ready for live day trading action
Learn how to buy and sell options, assignment options, implement vertical spreads, and the most popular strategies, and prepare for live options trading How to read futures charts, margin requirements, learn the COT report, indicators, and the most popular trading strategies, and prepare for live futures trading

Features - EquityZen Review

EquityZen’s investments are primarily tech businesses in their late-stage, likely to have an IPO (or similar) soon, provided their given track record and operating history. As a result, only accredited Investors can view the list of EquityZen’s offerings and review any previous rounds’ financing data, share price performance, and other company information.

Availability of these investments relies on sellers of private shares and the company’s approval. Currently, EquityZen has 16 assets available, with others on a waitlist. They also have preview investments that allow investors to express their interest and will likely gain shareholders’ and the company’s confidence in the investment. Included in the assets are established tech companies with known brands. 

These assets are made available to EquityZen clients with a legal and financial trick. The seller provides stock to EquityZen, and a Special-Purpose Entity (SPE) LLC is created to hold the stock. 

EquityZen’s investors purchase a membership interest in the SPE LLC. Investors receive the company shares in their brokerage accounts if/when the IPO happens and after the lockup period. For the duration of the SPE-LLC, investors receive an annual K-1 tax statement. Each investment has a one-time fee ranging from 3-5% in addition to the amount of investment (like a transaction fee) paid to EquityZen. After this fee, there are no carried interest or AUM fees. 

EquityZen also offers curated funds that provide investment in 4-25 pre-IPO companies with the purchase of a single asset–claiming historical fund returns of 15 to 25% for a $20,000 minimum investment in these funds.

How Do I Invest In Pre-IPO Startups?

An EquityZen review of what you need to be eligible for their pre-IPO investment participation, you must first qualify as an “Accredited Investor.” To do so, the Security and Exchange Commission (SEC) requires all U.S. or international investors to meet one of the following and show proof of such:

  • In each of the prior two years, you have earned over $200,000 AND expect to do the same this year.
  • In each of the prior two years, you and your spouse’s combined income was over $300,000, AND expect this year’s income to be the same.
  • Your net worth or the combined net worth of you and our spouse meets or exceeds $1 million, EXCLUDING your primary residence’s value.
Trading Rooms Stock Signals and Trading Alerts Stock Watch Lists
DESCRIPTION Bullish Bears offer trade rooms in our Discord. Our chat rooms include penny stocks, large caps, options, and futures We offer stock signals and trade alerts through our watch lists and Discord bots using Tradytics Swing trade and day trade watch lists with hand-picked symbols that have the best chance of breakouts. These are stocks to watch

How Much Does EquityZen Cost? (Pricing Review)

An EquityZen review of their pricing shows they charge sellers a 5% fee when closing their transactions. If your sales are larger, you could get a break from the charge of the fee. It could be less than the 5% fee. That doesn’t mean buying larger blocks, however. If you’re worried about the fee, keep practicing instead of using real money. That way, you can feel comfortable when you’re trading real money.

Risks and Protections

EquityZen’s companies are high-risk/reward private companies.  As of June 2020, returns for the 250 companies offered have ranged between a 100% loss and a positive 450%.  Most provide no expectation of dividends, payments, or cash flow, with the potential to lose all of their value.  Startup investing is a numbers game, with a minority of investors able to obtain high rewards while many others fizzle.  The best results are those that can diversify and are successful in selection.  This requires significant funding and relationships with companies that most investors don’t have. 

EquityZen is a registered FINRA broker-dealer subject to due diligence requirements, ensuring the suitability of investments for their clients.  Note this does not guarantee returns.  Their investments are SEC Reg D and, therefore, meet special rules to provide exemptions but not traditional SEC-registered assets and are thus only available to accredited investors.

EquityZen Stock Price and Symbol: Are They Publicly Traded?

We found in our EquityZen review investors cannot purchase shares of EquityZen because they are a private company.

EquityZen Review Final Thoughts

We hope you enjoyed this EquityZen review. For accredited investors with the necessary funding, EquityZen is an excellent place for retail investors to access pre-IPO late-stage investments that would otherwise not be available. After researching, the safest strategy choice would be with a well-diversified portfolio of approximately 12-14 companies. Such a strategy would cost a minimum of about $126,000 with fees and require significant research into companies without much information. One could alternatively invest in one of EquityZen’s curated funds for a minimum of $20,000+fees; EquityZen’s relationships with the offered companies and employee access may make this the better option. 

As always, make sure never to invest in a single asset more than you can afford to lose, and good luck with all of your trades. 

Related Articles

Fiduciary Definition

Fiduciary Definition

What is the fiduciary definition? At a high level, a fiduciary is a person or organization that acts on behalf of another person or persons.

Read More »
Firstrade Review

Firstrade Broker Review 2024

Are you reading the Firstrade review because you’ve heard that this broker now matches Robinhood’s commissions? Wait! What? Oh! Haven’t you heard? Table of ContentsFirstrade

Read More »


If you’ve looked for trading education elsewhere then you’ll notice that it can be very costly.

We are opposed to charging ridiculous amounts to access experience and quality information. 

That being said, our website is a great resource for traders or investors of all levels to learn about day trading stocks, futures, and options. Swing trading too! 

On our site, you will find thousands of dollars worth of free online trading courses, tutorials, and reviews.

We put all of the tools available to traders to the test and give you first-hand experience in stock trading you won’t find elsewhere.

Our content is packed with the essential knowledge that’s needed to help you to become a successful trader.

It’s important to treat day trading stocks, options, futures, and swing trading like you would with getting a professional degree, a new trade, or starting any new career.

Invest the proper time into your Trading Education and don’t try to run before you learn to crawl. Trading stocks is not a get-rich-quick scheme. It’s not gambling either, though there are people who treat it this way. Don’t be that person! 


The Bullish Bears team focuses on keeping things as simple as possible in our online trading courses and chat rooms. We provide our members with courses of all different trading levels and topics.

If you’re a beginner, intermediate level, or looking for expert trading knowledge…we’ve got you covered. 

We have a basic stock trading course, swing trading course, 2 day trading courses, 2 options courses, 2 candlesticks courses, and broker courses to help you get started. Free.

Just choose the course level that you’re most interested in and get started on the right path now. Become a leader, not a follower. When you’re ready you can join our chat rooms and access our Next Level training library. No rush. We’re here to help.

Click Here to take our free courses.