Danny B.
Stuck with shares I cannot sell!
Pros: Good website and fairly user friendly. Cons: 5% fee when buying and when selling! Worse, you can only sell shares after at least a year and most of the time you have to own at least 2% of the fund in order to sell even then, which practically means that you're often stuck with shares that you cannot sell! You are forced to wait for either an IPO or an acquisition, and keep in mind that some companies remain private for well over a decade. At the very least, they should reduce the percentage requirement to 1%. I will update my review favorably if they do.
Response from EquityZenJul 21, 2025
Hi Danny, Thank you for your feedback. Please note, the 2% threshold you're referring to is a tax concept derived from Publicly Traded Partnership (PTP) rules. There's a safe harbor provision where transactions exceeding 2% of the fund are not classified as PTP. Conversely, any sales in the fund amounting to 2% or less could inadvertently trigger significant tax consequences for all Limited Partners (LPs). This rule is a direct result of these taxation requirements, not an EquityZen-determined threshold. Please reach out to us at [email protected] for any assistance.