Sharespost (Forge) Review- Pre-IPO Marketplace
Pros
Positive aspects of the game- Wide range of Pre-IPO startups
- Seamless process
- Tax efficient investing
Cons
The disadvantages we highlight- Only for accredited investors
- There is a minimum fee
- What Is an Accredited Investor?
- How Sharespost works for investors?
- Sharespost for shareholders
- Sharespost for companies
- Types of investments Sharespot offers:
- What do you get when investing with Sharespost?
- Pricing and Fees
- Pre-IPO Market Place Alternative
- Is Sharespost legit?
- How does Sharespost make money?
- Conclusion:
6 minutes
Do you want to buy some shares from big companies like IronSource or Monday.com? That’s only possible when you are a founder or an employee. Everyone can purchase shares from public companies, but the case is not the same when it comes to private companies. This is where secondary market places come into a role. One such name is Sharespot.
Founded in 2009, Based in Silicon Valley, Sharespost is a Pre-IPO secondary market place that connects the broker and the dealer to exchange shares. Sharepost merged with Forge Global. As of August 2011,Forge Markets – combining the best of both the Forge and SharesPost brands.The secondary market act as an escrow between two parties. The market place can be consider also as an equity crowdfunding. In addition it also does analyst research on the companies to help in exchanges and setting prices. It is a bridge to connect people who want to sell and buy private company shares. Offering people with vested options, ISOs, Restricted Stocks or Restricted Stock Units (RSU's) to exchange for cash.
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What Is an Accredited Investor?
An accredited investor is the one who is allowed to trade across securities that are not registered with financial authorities. It can be an individual or a business, and they got this access by satisfying one of these requirements: such as their net income, asset size, professional experience, and governance status.
How Sharespost works for investors?
Buying shares from a private company is hard. Sharespot helps you in doing that. It will help you find the seller, negotiate the price, fill out the legal paper, and finally, with the collaboration of US bank sharespot, allows the investor transact money.
For buying shares from a private company, you should be trusting a well-reputed company to buy shares. You must be an accredited investor for all this process.
Sharespost for shareholders
For selling shareholders, you need to make an account on sharespot for free. Then fill in the form to show your interest in selling, the desired price, and the shares you want to sell.
The agency's security professionals will contact you for the transaction process. Sharespot has 80000 accredited investors in its network, so it will help you in finding potential buyers. Further, sharespot's team works efficiently to sell your shares from a private company.
Not everyone can buy shares of private companies. Sharespot will help you sell your shares to accredited investors and make the transaction possible at reasonable prices.
You can trust this company with your exchange process when you have to sell shares of private companies.
Sharespost for companies
For issuers, sharespot collaborate with them to customize its services so that broker and dealer could find the best of the services and meet issuer's needs. It works from informal shareholder-by-shareholder relationship to the management and structuring of large formal programs.
Sharespot protects the integrity of the companies and shares the information with the consent of the issuer. It also makes sure to sign a non-disclosure agreement from both parties before making any deal. That makes this agency a safe play.
Types of investments Sharespot offers:
Sharespot offers four types of investments for your convenience.
Institutional investment
Sharespot makes investment on the institution level. You can get access to the block inventory and insights of the company when working with their team.
Individual investment
When you are a single person and want to buy or sell shares of any private company, sharespot will give you access to the company insights, so you get to know well about the company you want to make a deal with.
Selling shareholders:
This type of investment helps you in selling your shares from a private company at a reasonable rate.
Company investment:
For a company investment, sharespot gives an opportunity to partner with them to connect with a wide range of investors and shareholders.
What do you get when investing with Sharespost?
Sharespot gives you access to the insights of the companies you want to buy or sell shares with. It will handle all the complicated work for you, like connecting the seller and buyer, signing an agreement, and managing the transaction for you. It has access to significant private companies you wish to buy shares from.
Sharespot is a marketplace for pre IPO investments. You can get huge gains when investing in these companies. Pre-IPO is before initial public offering that benefits you when you buy shares from such companies, and when the company went public, it will give you explosive growth.
Pricing and Fees
On average, for transactions above $100,000, sharespot cost 5% fee to the seller. If the transaction is less than 100000, sharespot costs a flat fee of $5000.
Pre-IPO Market Place Alternative
Equitybee: Employees Stock Options Platform
AcreTrader: US Farmland Investing Platform
EquityZen: Employee Shares Market Place
Fundnel: Asia Largest Investment Platform
Is Sharespost legit?
Sharespot is registered with “SEC” and it is also a member of “FINRA” (financial industry regulatory authority). It imposes rules and core of conduct on the platform, such as “know your customer” requirements. It means a platform will first gather enough information from both the participants to process. Sharespot is also a member of the corporation “securities investor protection” that protects the investor from any loss or harm in case of failure of the deal.
The legal and regulatory framework is fluid that governs the sale of selling of securities. It means that the guidance provided without any action letter and other requirements is not binded to SEC and it can easily be reversed without further legislation.
The legal and regulatory framework is fluid that governs the sale of selling of securities. It means that the guidance provided without any action letter and other requirements is not binded to SEC and it can easily be reversed without further legislation.
Every member of sharespot community is free to consult legal counsel for their transaction process.
If you want to buy shares from a private company, sharespot can be your helper as it has access to 350 private companies and a trusted agency for ten years. For a very cheap monthly fee, you get a lot of benefits.
How does Sharespost make money?
Typically, sharespot charges both the transaction participants a commission based on the total transaction size and a management fee for the transaction.
Conclusion:
An unbiased review demands extensive research and user opinions. This sharespot review covered all you need to know to buy or sell shares from a private company. If you want explosive growth, reliable service at a reasonable cost, sharespot is a suitable place for you. You can visit their site for further information or if you have any questions about their services.
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