Business is categorized as an organizational entity involved in commercial, industrial, or professional activities, aiming to generate profits from its operations
Investors can enter the private credit market via Percent with a minimum of $500, accessing a variety of asset-based securities and corporate loans.
Investing on Percent comes with inherent risks, despite efforts to minimize these through a proprietary risk framework for its own deals. The risk levels can vary across the platform, depending on whether Percent or a third party underwrites the deal.
Liquidity on Percent, as with many private credit platforms, varies by investment. Generally, these investments are less liquid than public stocks, tied to longer-term commitments without guaranteed immediate access to funds.
As of February 1, 2024, Percent offers a 2.5% interest rate on idle cash in accounts and reports a historical weighted average APY of 13.41% on investments.
Percent offers investment horizons starting at 3 months, accommodating short-term investment strategies.
Percent accepts investments only from accredited investors in the U.S. with U.S. bank accounts, adhering to Reg D 506(c) exemption rules.
The minimum investment on EquityZen is $10,000, though this may vary by offering.
Investing in private companies via EquityZen involves risks such as limited liquidity, market volatility, company performance uncertainties, regulatory changes, less available information, and potential lack of diversification, which could impact investment returns.
EquityZen offers liquidity for vested shares only. It does not provide liquidity for unvested shares, unvested RSUs, or options directly.
Unlike public market investments, private investments carry higher risks and unpredictability. Consequently, it's challenging to define a standard return rate for EquityZen investments.
Typically, companies on EquityZen have received late-stage funding, suggesting an expected investment horizon of 2-5 years, but outcomes can vary widely.
Investing in FranShares involves risks such as market volatility, economic changes, and franchise-specific challenges. Despite efforts to mitigate risks, there's no guarantee of returns, and FranShares' financial health could impact investments.
While liquidity isn't guaranteed, the platform is developing a secondary market for potential future liquidity opportunities.
FranShares' TNT Franchise Fund Inc., with 55 locations across major U.S. metros, historically generates returns of 20 to 28% EBITDA per location after 16-18 months.
Income portfolios target a 10-15 year hold; growth funds aim for a 5-7 year period before selling.
FranShares welcomes both accredited and non-accredited investors, focusing mainly on opportunities for non-accredited individuals. The platform also accepts international investors from many countries, depending on the specifics of each offering.