Buy pre-IPO stock in private companies
Invest in a real estate fund
Investments
$10,000
The minimum investment on EquityZen is $10,000, though this may vary by offering.
Investments
$100
The Roots Investment Community Fund allows investors to start with a minimum investment of $100.
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 in the Roots Investment Community Fund carries risks including market fluctuations, economic changes, property-specific issues, and potential for financial loss.
Minimum Liquidity
1/5
EquityZen offers liquidity for vested shares only. It does not provide liquidity for unvested shares, unvested RSUs, or options directly.
Minimum Liquidity
1/5
Investors in the Roots Investment Community Fund can cash out after the first year, with liquidity options available quarterly for added flexibility.
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.
High Return
16 %
Investors in the Roots Investment Community Fund can expect an annualized return of 16%.
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.
Short-term Investment
1 year
The recommended investment period for the Roots Investment Community Fund is at least a year, but liquidity is offered quarterly for investors needing flexibility.
Who can invest
United States
The Roots Investment Community Fund is open to both non-accredited and accredited investors.
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 within the Roots Investment Community Fund may experience volatility due to economic conditions, interest rate changes, and local market dynamics. However, real estate typically shows less volatility than stocks, with rental income offering some stability.
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
The Roots Investment Community Fund is regulated by the SEC, with an offering circular filed under Regulation A+.
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
The Roots Investment Community Fund likely holds insurance to protect its assets, including property, liability, and loss of income insurance, safeguarding against damage, claims, and lost rental income.
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
Investors receive quarterly distributions, which they can reinvest or cash out, offering flexibility in managing returns.
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 cash out after the first year, with the Roots Investment Community Fund offering quarterly liquidity options.
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
The platform charges a $5 transaction fee for the first investment and $3 for subsequent investments. A 6% fee applies if liquidating before one year; no fee after one year.
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
Annual Statement
As a REIT, the Roots Investment Community Fund passing profits to shareholders who can deduct up to 20% of dividend income as capital gains, with no cap or wage restrictions.