EquityZen vs Ark7 Comparison

Assess their risks, liquidity, investments, returns, timeframes and other terms

Buy pre-IPO stock in private companies

Invest in rental homes

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Investments
$10,000

The minimum investment on EquityZen is $10,000, though this may vary by offering.

Investments
$20

The minimum investment amount required on Ark7 is $20 per share.


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.

Moderate Risk
3/5

Investing on Ark7 carries risks such as market volatility, property value fluctuations, economic impacts, and potential liquidity challenges in the secondary market.


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

Ark7 allows investors to sell their shares on a secondary market after a minimum holding period of one year, providing liquidity.

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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.

Low Return
3.22-6.96 %

Ark7 offers annualized cash return rates between 3.22% to 6.96%, or $0.1 to $0.58 per share, based on past performance or estimates for newer properties.


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
1+ year

Ark7 targets long-term investments in real estate for appreciation but allows selling shares after a minimum holding period for flexibility.


Who can invest
United States

Only accredited investors can invest in EquityZen's offerings.

Who can invest
United States

Ark7 is open to U.S. citizens or residents over 18 with an SSN or ITIN and a U.S. bank account. Select offerings are for accredited investors only.


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

Assets on Ark7 exhibit volatility influenced by real estate market shifts, economic conditions, and demand fluctuations. While real estate is generally stable, values and rental incomes can vary. Additionally, liquidity and market demand on the secondary market may affect share prices and selling ease.


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
SEC Regulated

Ark7 complies with SEC regulations, making necessary filings for transparency and undergoes regular independent audits for financial accuracy and operational compliance.


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

Ark7 secures comprehensive insurance for all properties, covering natural disasters, property damage, and liability, to protect investors' returns and mitigate financial risks.


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
Dividends

Ark7 offers returns through monthly cash distributions from rental income, after deducting operating expenses, and long-term property appreciation. Distributions are prorated based on shares owned and deposited monthly. Property appreciation potential comes from home value gains, with shares sellable on the secondary market after a holding period. Monthly distribution amounts may vary due to operational factors.


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

Investors can get their money back by selling their shares on Ark7's secondary market after a minimum one-year holding period or through property appreciation when they sell their shares.


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

Ark7 charges a one-time 3% sourcing fee of the property market cap for acquiring and listing properties, and a monthly asset management fee of 8-15% of rental income for property and tenant management.


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

Ark7 issues Schedule K-1 forms for properties taxed as partnerships and plans to issue 1099-DIV for properties treated as REITs, aiming to transition as they open to the public. Tax documents are sent before March 15th, considering depreciation and expenses to potentially reduce taxable income for investors.

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