TL;DR

EquityZen is a private marketplace that gives accredited investors access to shares of private companies before they go public. To invest, you’ll need to create an account, verify that you qualify as an accredited investor, browse available offerings, complete the required paperwork, and fund your investment once a deal is confirmed. While pre-IPO investing offers the potential for significant returns, these investments are high risk, illiquid, and typically require holding your shares for several years.

Buying Pre-IPO Stock Doesn’t Have to Be Complicated

If you’ve ever heard stories about people investing in companies like Stripe, SpaceX, or Databricks before they became household names, you may have wondered how they did it.

For many years, investing in private companies was limited to venture capital firms, wealthy institutions, and company insiders. Today, platforms like EquityZen have made the private market much more accessible for qualified individual investors.

That doesn’t mean buying pre-IPO stock works like purchasing shares on Robinhood or Fidelity. The process is different because these companies are still private, which means their shares do not trade on public stock exchanges.

The good news is that once you understand how EquityZen works, the process becomes much easier to follow. This guide explains everything beginners need to know before making their first pre-IPO investment.

What Is EquityZen?

EquityZen is an online marketplace that connects people who own shares in private companies with accredited investors who want to buy them. The company was founded in 2013 in New York with the goal of making the private equity market more accessible. In 2026, EquityZen became part of Morgan Stanley Wealth Management, expanding its reach within the private markets industry. 

Unlike a traditional stock exchange, EquityZen does not continuously match buyers and sellers throughout the day. Instead, it organizes investment opportunities when shares become available from employees, founders, or early investors looking to sell a portion of their ownership.

Many investments on EquityZen are structured through a Special Purpose Vehicle, often called an SPV. An SPV is a legal entity created specifically to hold shares in one private company. Rather than each investor buying shares individually, multiple investors pool their money into the SPV, which then owns the shares on their behalf. This approach allows smaller investments than would otherwise be possible.

Because private companies often remain private for much longer than they did in the past, marketplaces like EquityZen have become an important way for investors to gain exposure before an initial public offering, also known as an IPO.

Who Can Use EquityZen?

One of the first things new investors discover is that EquityZen is not open to everyone.

Most investment opportunities on the platform are limited to accredited investors. An accredited investor is someone who meets financial requirements established by the U.S. Securities and Exchange Commission, or SEC. These rules are designed because private investments generally involve higher risk and less public information than publicly traded stocks. 

When creating an account, EquityZen asks investors to verify their accredited status before they can participate in most offerings. Verification usually involves providing documentation showing income, net worth, or another qualifying method recognized under SEC regulations.

International investors may also be eligible for certain investments, depending on local regulations and the specific offering.

If you are not currently accredited, you can still create an account and learn about the platform, but you may not be able to invest until you meet the eligibility requirements.

What Companies Are Available on EquityZen?

One of the biggest reasons investors use EquityZen is access to companies that are still private.

Depending on current market availability, investors may find opportunities involving well-known technology, artificial intelligence, fintech, healthcare, and consumer businesses. Popular names have included companies such as SpaceX, Stripe, Canva, Databricks, Discord, and other late-stage startups. The selection changes regularly because listings depend on shareholders deciding to sell their stock. 

Unlike the public stock market, there is no guarantee that shares of a particular company will always be available.

If shares are not currently offered, investors can often indicate interest. EquityZen uses these expressions of interest to measure demand and may notify investors if a new opportunity becomes available in the future. 

Each listing typically includes information about the company, available investment amount, estimated valuation, risk disclosures, and details about the investment structure. Even with this information, private companies generally disclose far less financial data than publicly traded companies.

Step by Step. Creating Your EquityZen Account

Opening an EquityZen account is relatively straightforward.

You begin by visiting the EquityZen website and creating a free account using your email address. After confirming your identity, you’ll complete your investor profile.

The next step is accreditation verification. EquityZen works with investors to confirm they qualify under SEC rules before allowing participation in eligible offerings. This step helps satisfy regulatory requirements and protects both investors and the marketplace. 

Once your account is approved, you can explore available companies, read educational resources, follow businesses you’re interested in, and receive notifications about future investment opportunities.

Creating an account does not require making an investment immediately. Many users spend time learning how the platform works before committing any capital.

Step by Step. Finding and Buying a Pre-IPO Stock

Buying pre-IPO shares through EquityZen looks different from placing a stock order through a brokerage account.

First, browse the marketplace to explore companies currently accepting investor interest. If you find a business that matches your investment goals, you’ll review the available information and decide how much you would like to invest.

In many cases, you initially submit an indication of interest rather than purchasing shares immediately. This tells EquityZen that you would like to participate if sufficient shares become available. 

Once EquityZen secures enough shares from sellers and launches the offering, eligible investors receive an opportunity to reserve their investment.

After reviewing the legal documents, you’ll complete the required paperwork and finalize your reservation. Funds are generally requested after the transaction progresses through the necessary approvals rather than at the moment you express interest. 

When the transaction closes, your investment becomes part of the SPV or other ownership structure associated with that offering. From there, your investment remains private until a future liquidity event occurs.

A liquidity event is when investors have an opportunity to sell their investment. This often happens if the company goes public, is acquired by another business, or occasionally through another approved secondary transaction.

EquityZen Fees, Minimums, and Liquidity

Before investing, it’s important to understand both the costs and the long-term commitment involved.

Historically, EquityZen offerings have required minimum investments that are much lower than traditional private equity funds. Recent updates following the company’s acquisition by Morgan Stanley reduced transaction fees and maintained relatively accessible minimum investment amounts for qualified investors. Actual minimums and fees can vary depending on the specific offering, so investors should always review the current terms before committing capital. 

Liquidity is the biggest difference between pre-IPO investing and buying public stocks.

Public stocks can usually be sold whenever the market is open. Private investments often cannot.

You may own your investment for several years before you have an opportunity to sell. Even after a company completes an IPO, lock-up periods may temporarily prevent shareholders from selling immediately.

Because of this, investors should only commit money they will not need in the near future.

Pros and Cons of EquityZen

EquityZen offers several advantages for investors looking beyond the public stock market.

The biggest benefit is access. Individual accredited investors can gain exposure to private companies that were once available almost exclusively to venture capital firms and institutional investors.

The platform also simplifies much of the transaction process by handling documentation, compliance, and investment administration.

Another advantage is diversification. Investors interested in emerging industries like artificial intelligence, fintech, cybersecurity, and space technology may find opportunities before companies become publicly traded.

However, there are meaningful drawbacks as well.

Private companies provide less financial information than public companies, making research more challenging. Investments are highly illiquid, meaning your money could remain tied up for years. Valuations can change significantly over time, and some companies may never complete an IPO or acquisition.

Most importantly, investing in pre-IPO companies carries substantial risk. While some businesses experience tremendous growth, others fail to meet expectations or lose value entirely.

Common Misconceptions and Key Terms

Many beginners assume buying pre-IPO stock guarantees large profits because they hear stories about successful companies eventually becoming public.

In reality, there is no guarantee that any private company will achieve a successful IPO. Some remain private indefinitely, while others may be acquired or fail altogether.

Another common misconception is that pre-IPO shares can be traded whenever investors choose. Unlike public stocks, private shares usually cannot be sold freely. Investors should expect long holding periods.

Understanding a few common terms also makes the process easier.

An IPO, or Initial Public Offering, is the first time a private company sells shares on a public stock exchange.

The secondary market refers to transactions where existing shareholders sell their shares to other investors rather than receiving newly issued shares from the company.

An SPV, or Special Purpose Vehicle, is a legal structure that allows EquityZen to pool multiple investors into one investment entity.

Liquidity refers to how easily an investment can be converted into cash.

Accredited investor describes someone who meets SEC financial eligibility requirements for certain private investments.

Frequently Asked Questions

Is EquityZen safe to use?

EquityZen operates through a regulated broker-dealer framework and has facilitated private market transactions for many years. Like any investment platform, however, using it does not eliminate investment risk. Private companies can lose value, and returns are never guaranteed.

Can anyone buy pre-IPO stock on EquityZen?

No. Most offerings are available only to accredited investors who meet SEC eligibility requirements and successfully complete the platform’s verification process. 

What is the minimum investment on EquityZen?

Minimum investment amounts vary by offering. EquityZen has historically offered lower minimums than many traditional private market platforms, and investors should review the current requirements listed for each investment opportunity before participating. 

How long do I have to hold my investment?

There is no fixed holding period. Many investors own their shares for several years before a liquidity event such as an IPO, acquisition, or approved secondary sale becomes available.

Can I sell my shares whenever I want?

Usually not. Private shares are much less liquid than publicly traded stocks, and sales often require company approval or another qualifying transaction before ownership can change.

Is investing in pre-IPO companies worth it?

It depends on your financial goals and risk tolerance. Pre-IPO investing can provide exposure to high-growth companies before they become public, but it also involves greater uncertainty, longer holding periods, and a higher chance of losing money than investing in diversified public market funds.

Bottom Line

EquityZen has helped make pre-IPO investing more accessible by connecting accredited investors with private company shareholders through a regulated marketplace. While the investment process is different from buying stocks through a traditional brokerage, it becomes much easier to understand once you learn how private market transactions work.

For investors who qualify, EquityZen can provide access to companies that may still be years away from an IPO, so patience is essential. These investments are designed for long-term investors who understand that private markets involve limited liquidity, less public information, and higher risk.

If you’re interested in adding private companies to your portfolio, start by learning how the marketplace works, carefully review each opportunity, and invest only money you can comfortably leave untouched for an extended period.