The information contained on this page has been compiled, as of its date of publication, with considerable care to ensure investors are informed. The purpose of this page is to provide you with general information about qualified investors residing in the E.U. The information provided should not be considered as investment or other advice or a recommendation to buy, sell, or hold a particular investment. No representation or warranty, express or implied, is made to the accuracy or completeness of the information.
Early-stage “Angel” investing is a high risk activity. Investments in startups can result in profits as well as losses up to the full amount invested. Also, past performance is not indicative of future returns. Startup investments are illiquid, and often take many years to generate realised returns, if any.
Actual participation in investments presented by syndicates, super-angels and funds via The Angel Round newsletter is restricted to those who successfully submit the onboarding investor due-diligence documentation of partner investment platforms, as required under international anti-money-laundering laws.
Actual access to information regarding The Angel Round newsletter’s available investment opportunities is restricted to those who can fully understand and are able to bear all of the risks involved in the forward purchase of the specified instruments, including, without limitation, the risk of loss in excess of any initial or additional payments.
These are sophisticated investors familiar with early-stage investing and the obligations of the nature of the specified instruments and who have the necessary financial means and knowledge to make investments in risky asset classes. Each country has different criteria to assess whether someone is eligible to be considered a qualified investor.
Investors are required to confirm that they meet the qualifications of accredited / qualified investors according to the relevant laws applicable to the personal circumstances of the investor, in order to view and invest in The Angel Round newsletter’s available investment opportunities.
The Angel Round newsletter does not provide investment advice or make recommendations in any way. Any decisions to invest must be taken solely by the investor; The Angel Round Newsletter shall in no event be liable for any damages or losses except to the extent permitted by law.
Why must I be accredited or be a qualified investor?
Early stage, privately-held companies are high-risk investments, and therefore many countries require individuals to meet certain financial criteria before being allowed to participate in these investments.
What are the overall criteria of qualification/accreditation?
The Angel Round newsletter follows the rules of your country of residence – the one in which you pay taxes. These rules vary country by country, but many address the following two questions:
What are the criteria to qualify as a Qualified/Accredited investor, e.g., what is the minimum level of income and/or net worth, and the knowledge and experience investors need to meet in order to participate in certain types of investments?
What proof do investors have to give in order to proof they meet these criteria?
Criteria of qualification for E.U. investors to receive startup investment opportunities via The Angel Round Newsletter :
Within the EU, to be an elective professional investor (so-called ‘opt-up professionals’), one must meet a minimum of two of the following three criteria:
- Carried out transactions of ‘significant’ size, (at least EUR 50,000) on the relevant market at an average frequency of 10 transactions per quarter over the previous four quarters.
- Works (or has worked) in the financial sector for at least one year in a professional position, which requires (or required) knowledge of the transactions or services envisaged.
- The size of the investor’s financial instrument portfolio (defined as cash deposits and financial instruments) exceeds EUR 500,000.
Entities, such as credit institutions, investment firms, insurance companies, collective investment schemes, and pension funds are qualified to be registered as a professional client per se, as long they meet two of the following size criteria:
- A balance sheet with a total of EUR 20,000,000; or
- A net turnover of EUR 40,000,000; or
- Funds of EUR 2,000,000.
Criteria of qualification for U.S investors to receive startup investment opportunities via The Angel Round Newsletter :
The SEC defines individual and institutional accredited investors differently under Rule 501 of Regulation D.
For an individual, accreditation is based on wealth, income qualifications, or financial expertise demonstrated through specific credentials or certifications. To be accredited, individual people must meet one of the following criteria:
Net worth over $1 million, not including primary residence (individually or jointly with spouse or partner)
Income over $200,000 (individually) or $300,000 (joint income with spouse or spousal equivalent) for at least the past two years, including the current year
Financial professionals who hold in good standing a securities representative license (Series 7), an investment adviser representative license (Series 65), or private securities offerings representative license (Series 82)
For investments in private funds, “knowledgeable employees” of the fund count as accredited investors in that fund
Criteria of qualification for U.K investors to receive startup investment opportunities via The Angel Round Newsletter :
To be considered an accredited investor in the U.K, a person has to earn at least 100,000 GBP a year or have at least 250,000 GBP in assets (regardless of the individual’s primary residence, insurance, and pension policies).