OurCrowd Investor Accreditation Policy
Early stage, privately-held companies are high-risk investments, and many countries require individuals to meet certain financial criteria before being allowed to participate in these investments.
OurCrowd follows the rules of your country of residence – the one in which you pay taxes. These vary country-by-country, but all address the following two questions:
- What are the criteria for the minimum level of income and/or net worth of investors who are allowed to participate in these types of investments?
- What proof do investors have to give in order to satisfy their government that they meet these criteria?
For US investors only:
The United States government requires that investors have an annual income of $200,000 ($300,000 if filing joint) for the last two years with an expectation that their income level will continue or a net worth, not including primary residence, of $1,000,000 in order to invest in early stage companies or to hold in good standing one or more of the following professional certifications: General Securities Representative license (Series 7), Private Securities Offerings Representative license (Series 82), or Investment Adviser Representative license (Series 65).
US investors self-certify that they meet the above criteria when joining OurCrowd. This grants them full access to OurCrowd’s site. However, making an investment requires additional verification of a US investor’s accredited status. Upon an investor’s first commitment to invest in a company, OurCrowd will provide a checklist and letter for the investor to have signed by one of the following professionals to verify their accredited status:
- A registered broker-dealer
- A registered investment adviser
- A licensed attorney in good standing, or
- A registered CPA in good standing
If you have any questions about the accreditation process, don’t hesitate to contact us for guidance. This third-party verification is due to regulatory changes that came into effect September 23rd, 2013.
Please note that this not an OurCrowd-only requirement. Every company that offers these types of investments must have a letter on file from each investor who makes an investment after September 23, 2013.
The letter is valid for a year. In order to make further investments, you must get another letter from one of the professionals listed above to certify that you still meet the US Government requirements.
Countries Other Than the US:
If your primary residence for tax purposes is outside the U.S, your accredited investor status will be determined by your country of residence. The sign-up process to the OurCrowd platform is country-specific, which means that each investor must meet the requirements as prescribed by his/her respective country of residence.
Accreditation requirements differ from country to country depending on local laws and regulations. To be considered an accredited investor, you will need to meet the required income and/or asset threshold as mandated by the laws of your country of residence. In some countries, evidence demonstrating that you meet the income and/or asset threshold is required either by obtaining verification from a lawyer or accountant or providing certain back-up materials such as recent pay slips and/or bank statements which evidences a person’s income and/or financial net worth. In many other judications, self-certification of a potential investor’s income and/or financial net worth is sufficient. Included in your onboarding package will be the relevant form(s) which will explain what is required for you to demonstrate accredited investor status.