Pre-IPO Trading Platform EquityZen Is Said to Consider Sale
(Bloomberg) -- EquityZen Inc., a trading platform for shares in private companies, is exploring strategic options including a possible sale, according to people familiar with the matter.
The New York-based company, which is working with a financial adviser, could fetch more than $700 million in a sale, said the people, who asked to not be identified because the matter isn’t public. A final decision on pursuing a sale hasn’t been made and EquityZen could opt to remain independent, the people said.
A representative for EquityZen declined to comment.
Platforms such as EquityZen and Carta that help sell shares in private companies have exploded in popularity as venture capital-backed startups put off initial public offerings even amid rapid growth.
The firms create a market for employees who want to liquidate some of their holdings to sell shares to investors seeking to buy into hot startups. EquityZen’s platform handles trades in companies including SpaceX, Reddit Inc. and TikTok parent Byte Dance Ltd., according to its website.
Co-founded in 2013 by Chief Executive Officer Atish Davda, EquityZen’s backers include Draper Associates, which led a $3 million funding round in 2017, according to a statement at the time.
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