What is ZPX?
ZPX is a technology platform that facilitates equity investments in mid- and late-stage privately-held tech companies (often called “pre-IPO” companies). ZPX also seeks to provide accurate and reliable information about the traditionally opaque private tech markets. ZPX’s primary focus is on well-known names, with established business models and significant brand awareness, typically valued at more than US$2 billion. ZPX also facilitates markets in companies that are at an earlier stage in their life-cycle (valuations in excess of ~US$200mn).
Who is qualified to invest?
Accredited investors who meet suitability and compliance standards are eligible to transact on the ZPX platform. Our global investor base consists of VC funds, family offices, qualified individual investors and institutional asset managers of all shapes and sizes. You should be comfortable with the illiquidity risk and limited information inherent to private securities. Please note that we do not provide legal advice to either buyers or sellers – all parties are responsible for their own diligence on both the asset class and the particulars of any transaction.
What is your compliance process?
All transactions are completed through affiliated licensed broker-dealers. While we are a Singapore – registered entity, we also have partnerships/affiliations with appropriate broker-dealer/financial advisor entities in the US, UK, India, China and the Middle East. We extensively engage with outside Counsel and our advisory board (which is composed of both eminent VC’s and senior corporate lawyers) to ensure all our engagements via the platform are in conformity with applicable laws and regulations.
Through which entity do I invest?
We typically facilitate transactions via entities owned by the buyers themselves, subject to proof of funds/ownership, customary ZPX due diligence and any applicable compliance checks and regulations. In certain specific instances, we will route the transaction through a ZPX vehicle, which will be domiciled in Singapore.
Why should I consider investing in the private tech markets?
There has been a massive shift in wealth creation from public tech investing to private tech investing over the last decade and a half, a trend further amplified by the ability and willingness of private tech companies to stay private for much longer than they did in the past. The private tech market is rapidly becoming a large asset class in its own right, and one that is essential to building a balanced portfolio with enough alpha and diversification. While the right degree of exposure to the private tech markets will certainly vary on an individual basis, it has been our experience that many accredited investors including wealthy individuals, family offices, and a plethora of institutional investors have discovered substantive investment opportunities in fast-growing, mid to late stage tech companies.
I am a qualified, accredited investor but have no familiarity with the private tech markets. Can you still help me?
This asset class is meant for sophisticated investors who pass the qualification threshold.
As you consider an investment, it’s key to understand the key risks of private market investments, including but not limited to:
Your capital may be locked up for long periods of time (7 to 10 years)
They are risky, illiquid investments and you should not invest more than you are prepared to lose
There is often little or no information available
There may be legal, regulatory, and tax risks associated with each investment
We strongly recommend consulting with your financial advisor, legal counsel, tax accountant, or other experts before investing via the ZPX platform.
What kind of companies can I access via the ZPX platform?
We provide access to almost all of the largest growth-stage companies as well as many mid-stage ones. Sign up on our platform, complete your qualification forms, and you’ll be able to learn more about our inventory.
How does Pricing work? How much company information can I expect?
In the ultimate analysis, demand and supply determine price. Some other factors that anchor the price are time elapse since last round, last round valuation, performance, market size, and overall market and sector sentiment. For most late-stage companies that have recently had a financing event, it has been our experience that transactions close at or slightly below the last known valuation. Usually, detailed information around financials, traction,company strategy etc are not available to investors in the private markets. ZPX provides access to some high-level information about the Company via both proprietary and public data sources. We may also direct you to third-party research, recent press releases, and other public information. Prospective investors should conduct independent due diligence to arrive at the requisite level of comfort to make an investment. For larger cheques (> $10/15mn), there may be some information right associated with the transacted block. These will be determined and communicated on a deal-by-deal basis.
Do you work with other brokers and other intermediaries?
Yes, we believe that the paradigm of strong and reliable execution in private tech equity is best accomplished by collaborating closely with the many high-quality professionals already operating in the market. The focus is to provide access to high-quality investment opportunities to accredited investors, and to execute on such opportunities in a fair, transparent and efficient manner, whether it be through direct relationships or through other intermediaries.
What is the fee structure?
The fee varies on a deal-by-deal basis but will always be highlighted in the information section of every deal to ensure transparency. It could comprise of a front-loaded fee, a back-end fee or a combination of both depending on the specific opportunity. It will also be determined by the specific financial regulatory regime relevant to the transaction.
How is the investment structured?
In most cases, the investment will be via a SPV holding the underlying shares, either directly or indirectly. In some cases, the SPV will be owned and managed by ZPX. The vast majority of transactions will be via a SPV structure rather than a direct share transfer. Some of these SPV’s may have specific, additional economic terms (management fee/carried interest) specified by the owner of the SPV. The underlying shares may be common or preferred shares, and any special features or rights associated with the share class in question will be described in the Deal section.The exact investment structure for each deal will be extensively vetted by ZPX and disclosed in the Deals section.
How does the investment process work?
Once you indicate investment interest in a deal, the documentation execution and closure process will be initiated to complete the investment. We will work closely with you throughout the process to ensure that the documentation set is complete and compliant with all applicable laws and regulations. Post this process, which typically takes around 2 weeks, we will initiate the deal closure process.
I have a specific private name in mind but I am not able to find it on the platform. Can you help me access deals for this name even if I don’t see it on the platform ?
We are continuously adding curated deal flow to the platform. If you would like to learn more about a name that is not there on the platform you can send us an email at email@example.com with the subject “Need access to [Name]”