Assess their risks, liquidity, investments, returns, timeframes and other terms
Invest in fractionalized fine wine collections and rare spirits
Buy pre-IPO stock in private companies
The minimum investment on EquityZen is $10,000, though this may vary by offering.
Investing with Vint carries inherent risks, including market volatility and economic fluctuations that can impact the value of wine and spirits collections. The lack of a secondary market further increases risk by limiting early exit opportunities for investors.
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.
Vint currently does not offer a secondary market for the trading of interests in its wine and spirits collections, which means that investors generally lack immediate liquidity options.
EquityZen offers liquidity for vested shares only. It does not provide liquidity for unvested shares, unvested RSUs, or options directly.
Vint has achieved a net annualized return of 28.7%, calculated from realized exits of its investment offerings, reflecting the aggregate average performance of the platform's assets under management.
Unlike public market investments, private investments carry higher risks and unpredictability. Consequently, it's challenging to define a standard return rate for EquityZen investments.
Vint's investment time horizon for its collections spans 1 to 3 years on average.
Typically, companies on EquityZen have received late-stage funding, suggesting an expected investment horizon of 2-5 years, but outcomes can vary widely.
Investment opportunities with Vint are open to accredited investors, who must satisfy certain SEC-mandated financial criteria.
The wine and spirits market experiences volatility, which can lead to rapid changes in the value of Vint's collections.
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.
Vint adheres to SEC regulations by providing offering circulars for public investment and undergoes regular audits to maintain financial transparency and regulatory compliance.
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.
Vint's investment assets are professionally stored and fully insured, with a strategic focus on location, primarily in the UK and additional facilities in the US, to align with potential sale markets.
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.
Vint does not issue regular dividends; returns are generated from the sale of assets at a gain.
Investors in private companies on EquityZen typically do not receive dividends, as these companies often reinvest profits to fuel growth.
Investors receive funds from Vint after a collection is sold and proceeds are distributed, less any applicable fees.
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.
Vint applies a transaction fee of 2.85% on both the purchase and sale of wine shares, encompassing costs for acquisition, storage, insurance, and selling. Additionally, there is a spread fee of 1.5% applied to the transactions of wine shares.
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.
After a collection sale, Vint issues pro-rata proceeds to shareholders and provides a 1099-DIV for tax reporting, prioritizing the settlement of any liabilities first.
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.