The startup, a marketplace for private secondary investments in companies connecting shareholders and investors, will focus on growth stage private investments in US-based companies that are typically out of reach for Indian investors. It also aims to bring in investments for India-specific firms. “We get access to deals through the company’s compliance, when current and former employees want to sell a certain percentage of their equity in the company, sometimes pooling sellers into one transaction,” said Atish Davda, cofounder of EquityZen.
“Deal volumes can be as small as $20,000 to over $1 million and Indian investors could get access to companies like Uber, Dropbox, Lyft amongst others. “Investors are charged a small one-time sales fee of 5% for all single-company opportunities on the platform.For investments over $500,000, the fee goes down. An ambassador programme by EquityZen will enable accredited investors to purchase equity, connecting them with existing shareholders of technology companies who are interested in selling.