Buy pre-IPO stock in private companies
Invest in trading cards
Investments
$10,000
The minimum investment on EquityZen is $10,000, though this may vary by offering.
High Risk
4/5
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.
High Risk
4/5
Investing in trading cards on Alt involves market risk, liquidity risk, uncertainties in authentication and grading, regulatory changes, operational risks including cybersecurity threats, and risks related to the physical storage and insurance of assets.
Minimum Liquidity
1/5
EquityZen offers liquidity for vested shares only. It does not provide liquidity for unvested shares, unvested RSUs, or options directly.
Moderate Liquidity
2/5
Alt enhances the liquidity of trading cards through the Alt Exchange and Alt Liquid Auctions, enabling quick and efficient buying and selling of authenticated, graded cards stored in the Alt Vault. Bi-weekly auctions provide regular opportunities for transactions, while Alt Lending allows users to access cash without selling their assets.
Receive new reviews from Fintorial
Not Predictable Return
N/P
Unlike public market investments, private investments carry higher risks and unpredictability. Consequently, it's challenging to define a standard return rate for EquityZen investments.
Not Predictable Return
N/P
Returns on trading card investments via Alt are influenced by the rarity, condition, and market demand for specific cards, making them highly variable. While some cards may see substantial appreciation, others might not perform as well, reflecting the speculative nature of alternative investments. Investors should adopt a long-term view and be prepared for fluctuations, as significant returns are possible but not guaranteed.
Long-term Investment
2-5 years
Typically, companies on EquityZen have received late-stage funding, suggesting an expected investment horizon of 2-5 years, but outcomes can vary widely.
Long-term Investment
5+ years
The investment time horizon for trading cards on Alt is typically long-term.
Who can invest
International
To invest on Alt, individuals must be at least 18 years old, provide a current address, a Social Security number for U.S. residents, and a valid government-issued photo ID for both U.S. and international users. Alt is inclusive of international investors, accepting payments from 76 additional countries.
Moderate Volatility
3/5
Assets on EquityZen, which are shares in private companies, can be highly volatile due to limited public information, sensitivity to market conditions, low liquidity, and company-specific events, leading to significant price fluctuations.
Moderate Volatility
3/5
Trading cards on Alt are subject to volatility due to factors like changing market demand, the rarity and condition of the cards, and broader economic trends. This niche market's limited buyer and seller base can lead to significant price fluctuations, making the value of these assets potentially change rapidly and unpredictably.
Regulation and audits
SEC Regulated
EquityZen Securities is registered with the SEC and is a member of FINRA/SIPC, ensuring it adheres to regulatory standards and practices for investor protection and undergoes regular audits.
Regulation and audits
Not Regulated
Alt adheres to regulatory requirements by verifying the identity of all users, a step that aligns with legal standards for financial technology platforms. Although specific audit details aren't provided, such platforms typically undergo periodic audits to ensure compliance with financial regulations and cybersecurity standards.
Insurance
No
EquityZen is a FINRA/SIPC member firm, offering account protection up to $500,000 (including $250,000 for cash claims) through SIPC in case of brokerage failure, not covering market value losses.
Insurance
Yes
Alt offers insurance for trading cards stored in its vault, safeguarding investors' assets against theft, damage, and loss.
Payouts
No Recurring Payouts
Investors in private companies on EquityZen typically do not receive dividends, as these companies often reinvest profits to fuel growth.
Payouts
No Recurring Payouts
Trading cards on Alt do not offer dividends. Instead, the potential financial benefit for investors lies in the appreciation of the asset's value over time, with returns realized through capital gains upon sale.
Withdrawals
Investors can get their money back from investments on EquityZen mainly through an IPO, acquisition of the company, or secondary market sales on the platform. However, returns depend on market demand and timing of these liquidity events, with no guaranteed timeline.
Withdrawals
To get their money back, investors on Alt can sell their trading cards through the Alt Exchange or Alt Liquid Auctions. Once a sale is processed, the funds are credited to the seller's account, from which they can be withdrawn. The time and price at which cards sell may vary based on market demand and card rarity.
Extra Fees
Yes
EquityZen charges a 5% fee to sellers upon transaction closure. For investors, a one-time sales fee applies: 5% for investments up to $500,000, 4% for $500,000 to $1 million, and 3% for over $1 million.
Extra Fees
Yes
Alt charges no fees for vaulting services for cards graded by supported companies, while charging $5 for each unsupported graded and ungraded card. Sales transactions on Alt's marketplace incur a tiered selling fee based on the card's final sale price: 10% for sales up to $7,499, 8% for sales between $7,500 and $9,999, and 5% for sales of $10,000 or more.
Taxes
Tax Form
EquityZen issues a Schedule K-1 for taxable events and provides vetted tax documentation to investors. Upon investment, individuals complete necessary tax forms (W-9 or W8-BEN) and receive annual tax updates.
Taxes
Tax Form
Alt supports tax reporting for investors by issuing 1099-K forms to those who meet specific criteria: being a verified Alt customer, filing taxes in the US, and receiving payments over $600 in a calendar year. This ensures compliance with tax obligations by reporting to the IRS and relevant state tax authorities.