New York based marketplace for investing in private tech companies EquityZen has raised $3m in Series A funding led by Draper Associates. EquityZen operates a secondary marketplace for company-approved transactions in pre-IPO stock.
EquityZen had previously raised seed funding from 500 Startups, LaunchCapital and Projector Ventures. It has now raised $6.5 million altogether. Certainly, the company has been picking up momentum over the last year. According to CEO Atish Davda, EquityZen now serves 20,000 accredited investors, and roughly a quarter of those individuals joined in 2017; he also says his company has, in the first six months of this year, surpassed the transaction volume it saw in 2015 and 2016 — combined. No doubt part of that pick-up can be tied to EquityZen reducing the check size required to invest, from what used to be $20 million to $20,000 (and it wants to get that minimum down further, Davda says).