angelinvest

Investor Accreditation & Compliance

A clear overview of how Angelinvest meets global investor eligibility standards and how we verify investor status across different regions. This page exists to protect both founders and investors by ensuring every deal on our platform follows the relevant regulations.

Why This Matters

Early-stage investing is regulated differently across countries. Some opportunities are limited to investors who meet specific income, wealth, or professional criteria. Others simply require that the investor understands the risks involved.

This page explains:

  • What "accredited" or "professional" investor status means
  • How eligibility works in the US, UK, EU, and internationally
  • How Angelinvest verifies investor status
  • When documentation may be required

It's transparent, simple, and helps ensure our community invests responsibly.

1. What Is an Accredited Investor?

An accredited investor is someone who meets certain income, wealth, or professional experience requirements and is therefore eligible to invest in certain types of private market opportunities.

The definition varies by region.

Below is a simple summary; official definitions are linked where appropriate.

2. Accredited Investor Criteria (United States)

Rule 501(a) of Regulation D: Summary

Individuals may qualify if they meet ANY of the following:

  • Net worth over $1 million (excluding primary residence), individually or with a spouse/partner
  • Annual income over $200,000 (or $300,000 with a spouse/partner) for the last two years, with the expectation of the same this year
  • Professional financial credentials, including Series 7, Series 65, or Series 82 licenses
  • Director, executive officer, or general partner of the company issuing the investment
  • Knowledgeable employee at a private fund (for private fund investments)

Entities may qualify if ANY of the following apply:

  • Assets over $5 million
  • All equity owners are accredited investors
  • Registered financial institutions (banks, investment companies, insurance companies)
  • Registered investment advisers or exempt reporting advisers

Official guidance:

  • SEC: Accredited Investors - Regulation D
  • SEC: Assessing Accredited Investors under Regulation D

3. Professional Client Criteria (EU & UK)

European Union (MiFID II)

Under MiFID II, individuals may request to be treated as "professional clients" if they meet at least two of the following criteria:

  • The client has carried out significant transactions (average of 10 per quarter) in the relevant market over the last four quarters
  • The client's investment portfolio exceeds €500,000 (including cash deposits and financial instruments)
  • The client has worked in the financial sector for at least one year in a professional position requiring knowledge of the transactions or services envisaged

These criteria help ensure investors understand the risks of early-stage investing.

Official guidance:

ESMA: MiFID II Directive - Annex II (Professional Clients)

United Kingdom

The UK applies similar "professional client" rules under FCA regulations. Individuals may qualify by meeting criteria related to transaction volume, portfolio size, and professional experience.

Official guidance:

FCA Handbook: COBS 3.5 (Professional Clients)

UK investors should consult the FCA or a qualified adviser to confirm their eligibility.

4. International Investors

Investor eligibility varies significantly across jurisdictions.

Requirements may include:

  • Specific income or wealth thresholds
  • Professional experience
  • Local regulatory registration
  • Compliance with cross-border tax or reporting rules

Investors are responsible for ensuring they meet the requirements in their jurisdiction before investing.

5. How Angelinvest Verifies Investor Status

We use a combination of automated checks and human review to ensure compliance:

1. Stripe Verification

During signup and payment, Stripe handles:

  • Identity verification
  • Residency checks
  • Financial verification (where applicable)

2. Automated Analysis Tools

We review publicly available information that may indicate investor sophistication or eligibility.

3. Analyst Review

Our analysts review edge cases, inconsistencies, or missing data and may request supporting documentation when required.

This combination ensures a safe, compliant environment for both founders and investors without unnecessary friction.

6. Documentation We May Request

Depending on the jurisdiction and the type of investment, we may request:

  • Proof of income (e.g., IRS forms, tax returns)
  • Proof of net worth (bank/brokerage statements)
  • Proof of professional credentials or licenses
  • Entity structure documents for corporate investors

We only request documents when necessary for regulatory compliance.

7. Cross-Border Investment Considerations

Investing across borders may involve tax, reporting, or legal obligations depending on the investor's jurisdiction.

Angelinvest does not provide legal or tax advice.

Investors should consult their legal, tax, or financial advisors to ensure compliance with local regulations.

8. Disclaimer

This page is for informational purposes only.

It is not legal, financial, or tax advice, and it does not replace the official regulatory definitions. Regulations may change, and investors are responsible for ensuring they meet eligibility requirements in their jurisdiction.