Buy pre-IPO stock in private companies
Invest in private market alternatives
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.
Moderate Risk
3/5
Yieldstreet investments, focused on high-yield, specialty lending, carry inherent risks higher than traditional investments, primarily due to the potential for borrower default.
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
Yieldstreet's investments are generally less liquid, meaning they cannot be quickly sold for cash. These private market alternatives often require longer holding periods.
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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.
Moderate Return
9.6 %
The expected net annualized return (IRR) for investors on Yieldstreet is 9.6%.
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
6+ months
Yieldstreet's investments span time horizons from as brief as 6 months to as long as 5 years.
Who can invest
United States
Yieldstreet is open to U.S. persons with a valid TIN, U.S. bank account, and U.S. mailing address. Non-accredited investors can access the Alternative Income Fund, while single asset investments require accredited investor status verification.
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 Yieldstreet, being alternative investments, often show different volatility compared to traditional markets, potentially offering less correlation with broad market swings.
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
Yieldstreet is regulated and undergoes regular audits for compliance. Its partnership with Synapse Brokerage LLC, an SEC-registered broker-dealer and FINRA and SIPC member, ensures adherence to strict financial regulations.
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
Funds in the Yieldstreet Wallet are insured up to $250,000 by the FDIC, with deposits between $250,001 and $1 million spread across multiple FDIC-insured banks for extended coverage.
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
Yieldstreet offers varied dividend or interest payment structures: fixed income investments provide monthly payments at a target yield, diversified portfolios offer quarterly target yields, and art investments yield returns upon sale, all subject to specific terms and potential annualized net 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 on Yieldstreet receive distributions directly into their Yieldstreet Wallet and can withdraw these funds to their bank account as desired.
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
Yieldstreet's fees include a range from 0% to 2.5% annual management fees, structured notes incur a 1.25% annual management fee plus a $150 annual fund expense, the Yieldstreet Alternative Income Fund charges a 1.0% annual management fee and up to a 0.5% annual administrative expense.
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
Yieldstreet issues either a K-1 or 1099 form for tax purposes, based on the legal structure of the investment, with details provided on the offering page and in downloadable documents when new offerings are launched.