NOTE TO SPONSORS:
To allow your investors to obtain an Accreditation Letter outside of the capital raise commitment flow, please use the steps in this help article to make sure the feature is set up as intended.
Use these steps below to go through the self-service Accreditation tool in the Investor Portal:
STEP 1: Navigate to the Settings tab
STEP 2: Go to the Accreditation section
Here you will see all your investing Accounts and the Accreditation status for each Account.
In the example below, an LLC investing Account has an Unknown accreditation status.
STEP 3: Click the Get Accredited button to start the accreditation process for this LLC investing Account.
IMPORTANT: If the investor does not see the investing Account they are trying to get accredited, they should contact their Sponsor who will create and link an Account for them to their Contact in the portal. Investors cannot create new investing Accounts outside of the capital raise Commitment Flow.
STEP 4: Choose one of the options below which is best suited to verify your accreditation status:
Verify individual owners
Verify with assets
I have an accreditation letter
Each option is explained below:
The first three options apply to verifying the accreditation for the entity through the individual owners.
If the investor is using the assets of the entity to verify, please navigate to Option 4 below.
OPTION 1: VERIFY INDIVIDUAL OWNERS
When selecting the individual owners method, you will be asked to provide supporting documentation:
Proof of ownership
List all entity owners
How would you like to verify all entity owners
Provide proof of ownership:
Provide supporting formation documentation for the Entity in question (LLC, LP, Trust, etc.)
2. List all owners with an equity stake in the Entity they are investing through.
3. Verification for all entity owners:
You are prompted to provide information from each Entity owner to verify their Accreditation status.
IMPORTANT: For a 506c offering, each owner in the Entity will need to be accredited if you choose this option.
OPTION 2: MY NET WORTH IS OVER $1 MILLION
The second option for an equity owner investing through an Entity to obtain an Accreditation Letter is through their financials and a current credit report.
Any natural person whose individual net worth, or joint net worth with that person's spouse or spousal equivalent, exceeds $1,000,000
The person's primary residence shall not be included as an asset:
Indebtedness that is secured by the person's primary residence, up to the estimated fair market value of the primary residence at the time of the sale of securities, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of sale of securities exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability); and
Indebtedness that is secured by the person's primary residence in excess of the estimated fair market value of the primary residence at the time of the sale of securities shall be included as a liability;
STEP 1: Upload recent bank statements, financial quarterly reports, a recent credit report, etc.
OPTION 3: I HAVE AN ACCREDITATION LETTER
Upload an Accreditation Letter dated within the last three months. You may obtain an Accreditation Letter through the third-party provider if you wish to do so.
Examples of acceptable accreditation letters - Obtaining a written confirmation from one of the following persons or entities that such person or Entity has taken reasonable steps to verify that the purchaser is an accredited investor within the prior three months and has determined that such purchaser is an accredited investor:
A registered broker-dealer
An investment adviser registered with the Securities and Exchange Commission
A licensed attorney who is in good standing under the laws of the jurisdictions in which he or she is admitted to practice law; or
A certified public accountant who is duly registered and in good standing under the laws of the place of his or her residence or principal office
OPTION 4: VERIFY WITH ASSETS
Select this option to use the assets of the Entity, not the individual owners to verify the Accreditation status.
IMPORTANT
If an investor does not want to have all the individual owners of the Entity show accreditation, they can verify the Entities assets. The assets for the Entity must be over $5 million.
STEP 1: Provide proof of ownership
Upload supporting formation documentation for the Entity in question (LLC, LP, Trust, etc).
Proof of these can come from the following sources:
Bank or investment account statements
Appraisals and online valuations of properties owned (Proof of ownership of those properties)
Provide the percentage of ownership if properties are jointly owned
Ownership in marketable securities
Equipment, patents, trademarks, intellectual property, etc.
INVESTOR PORTAL
Once the accreditation letter has been generated, it is added to the Investor's Account and the Account's Accreditation Status is updated in the investor portal.
Quickly view the most recent status of your investing Account(s) by going to the Settings > Accreditation section.
No further action will be required from the sponsor for approval.
