Streamlining Private Market Investing: EquityZen’s Multi-Company Funds

Investing in private companies can be challenging, especially for investors who are new to the private market. Researching companies, gaining access to necessary information, and making informed decisions can feel overwhelming. That’s where EquityZen’s Multi-Company Funds come in—offering a streamlined way to gain diversified exposure to the private markets through a single investment.

Key Features and Benefits of EquityZen's Multi-Company Funds

1. Diversified Investment:
   • Invest in up to 25 late-stage growth companies through one fund.
   • Mitigate risk by spreading exposure across multiple companies and industries.¹
2. Lower Minimum Investment:
   • Start with as little as $20,000, making private market investing more accessible.
3. Proven Track Record:
   • Over the past decade, EquityZen has managed 30 multi-company funds, investing in 125+ companies.
   • Past portfolios include now-public names like Spotify, Instacart, Palantir, Robinhood, and DraftKings.²
4. Shorter Investment Timeline:
   • Funds aim for quicker capital deployment. Investments are typically made within one year compared to typically private equity funds who invest over a 2 to 5 year period.
   • Shorter fund terms of 5-7 years compared to traditional private equity funds (10+ years).³
     
5. Expert Management⁴:
   
   • Each fund has a dedicated Investment Committee that conducts rigorous due diligence to select portfolio companies.
   • Investment opportunities are sourced from EquityZen’s robust marketplace and supported by in-house research.

Interested in browsing the private company investment opportunities available on EquityZen's marketplace?

Types of Multi-Company Funds

EquityZen offers two options tailored to different investor needs:

1. Diversified Funds:
   • Invest in 15-25 companies for broad private market exposure.
   • Designed to balance risk across multiple industries.⁵ 
2. Sector-Specific Funds:
   • Focus on 3-6 companies within a particular industry or theme like AI, Fintech or the Future of Health.
   • Higher concentration means performance depends on specific market factors.
   • The majority of investments are chosen from a pre-determined target list of companies made available to investors before committing to the fund.

Why Choose EquityZen's Multi-Company Funds?

• Faster Capital Deployment:
  • 100% of your capital commitment is called upfront, allowing quicker investments and potentially quicker returns.⁶
• Access to Strong Deal Flow:
  • EquityZen leverages its marketplace to identify top opportunities, selecting only the most promising investments for each fund. 
• Transparency and Updates:
  • Investors receive quarterly portfolio reports and updates on key developments, such as new investments or portfolio exits.

Frequently Asked Questions:

When can I expect a return on my investment?
Funds target companies with exit potential in 1-4 years, meaning investors could see a return on their investment within a year of investing. However, investors should expect to hold the fund investment for 5-7 years. Publicly traded shares from portfolio exits are liquidated, and cash proceeds are distributed to investors.

Can I choose the companies in the portfolio?
No. The Investment Committee selects all portfolio companies, ensuring professional oversight and diversification.

Can I exit the fund early?
No. Investors should be prepared to hold their investment for the full fund term (up to 7 years).

What are the risks?
Investing in private markets is speculative and carries the risk of losing your entire investment. Ensure you understand these risks before committing.  Not all pre-IPO companies will go public or be acquired, and not all IPOs or acquisitions are or will become successful investments. There are inherent risks in pre-IPO investments, including the risk of loss of the entire investment, illiquidity, and fluctuations in value and returns.

Getting Started 

EquityZen’s Multi-Company Funds offer accredited investors a streamlined way to access private markets with lower barriers and shorter timelines. Whether you’re looking for diversified exposure or a targeted sector play, these funds make private market investing simpler and more efficient.

Ready to learn more? Explore EquityZen’s current Multi-Company Funds.

Footnotes:

1. Diversification does not assure a profit or protect against market loss.
2. Past performance does not guarantee future results.
3. Deep Dive: The Anatomy of a VC Fund
4. The past performance of the Investment Committee, its principals, members, or employees, and any other fund is not indicative of the future returns of any fund.
5. Diversification does not assure a profit or protect against market loss.
6. Multi-company funds are "private placements" of securities that are not publicly traded, are subject to holding period requirements, and are intended for investors who do not need a liquid investment.

Nothing set forth here shall constitute an offer to sell any securities or a solicitation of an offer to purchase securities in any jurisdiction. Any offer to sell or solicitation of an offer to purchase shall be made only to qualified investors through a private placement memorandum and associated offering documents (“Offering Documents”). The specific terms of an investment are subject to the Offering Documents, which will contain additional information not set forth here, including a description of certain risks of investing, which will be material to any qualified investors decision to invest.