✅ Understanding Investor Requirements and Verification
Certain investment opportunities on DealMaker, particularly those under Regulation D Rule 506(c), require investors to verify their status as accredited investors. This verification ensures compliance with U.S. Securities and Exchange Commission (SEC) regulations and helps protect all parties involved in the investment process.
Requirements may differ depending on the type of offering (e.g., Regulation D Rule 506(c) vs Regulation Crowdfunding (Reg CF)).
🧾 Who Qualifies as an Accredited Investor?
According to the SEC, an individual may qualify as an accredited investor if they meet any of the following criteria:
Financial Criteria
Income: Earned over $200,000 individually (or $300,000 jointly with a spouse or spousal equivalent) in each of the last two years, with a reasonable expectation of the same in the current year.
Net Worth: Has a net worth exceeding $1 million, either individually or jointly with a spouse or spousal equivalent, excluding the value of the primary residence.
Professional Criteria
Holds certain professional certifications, designations, or credentials in good standing, such as:
Series 7 – General Securities Representative License
Series 65 – Investment Adviser Representative License
Series 82 – Private Securities Offerings Representative License
Is a director, executive officer, or general partner of the company selling the securities.
Is a “knowledgeable employee” of a private fund.
For entities, various criteria apply, such as owning assets exceeding $5 million or being composed entirely of accredited investors.
Note: This is a summary. For a complete list of criteria, refer to the SEC's official guidelines.
🛠️ Regulation Crowdfunding (Reg CF): Overview and Investor Participation
Non-Accredited Investors and Reg CF Offerings
Reg CF offerings do not require investors to hold accredited status.
Investment limits apply based on income and net worth as defined by regulatory guidelines. Investors can participate freely within these limits.
Accredited Investors and Reg CF
Accredited investors are exempt from investment limits under Reg CF.
Verification of their accredited status may still be required based on the specific terms of the offering.
The full list of criteria to qualify as an accredited investor is available on the SEC website.
📤 How to Verify Your Accredited Status on DealMaker
If an offering requires accredited investor verification, DealMaker will guide you through the process. You may be prompted to provide documentation such as:
Income Verification: Recent tax returns, W-2 forms, or other income statements
Net Worth Verification: Bank statements, brokerage statements, or a letter from a certified public accountant (CPA), attorney, investment advisor, or broker-dealer attesting to your net worth.
Professional Certifications: Proof of relevant licenses or certifications.
For trusts or entities, additional documentation may be required, such as trust deeds or organizational documents. Refer to DealMaker's support article on verifying a trust as an accredited investor for more details.
🔁 If you have recently submitted documents for verification on the DealMaker platform, you can simply upload the same documents for a new deal.
You can access the documents you previously uploaded by logging into your DealMaker account (click here to visit our landing page).
From the dashboard, please find the previous investment and click on the green 'Review Investment' button. From the 'What’s Next' page, you will click on 'View & Upload' in the bottom right corner of the page. You will then be able to download the documents by clicking on the document's name.
⏳ Processing Time
The time to verify your accredited status can vary depending on the completeness of the documentation provided and the specific requirements of the offering. Typically, the process may take a few business days. You will be notified via email once your status has been confirmed.
📌 Important Considerations
Incomplete Documentation: Failure to provide the necessary documentation may delay or prevent your investment.
Issuer Acceptance: Even after verification, the issuer must accept your investment.
Regulatory Compliance: All information provided must be accurate and truthful to comply with SEC regulations.
Investment Limits: Non-accredited investors must adhere to regulated income-based and net-worth-based limits when participating in Reg CF offerings.
📬 Need Assistance?
If you have questions or need help with the verification process:
Visit the DealMaker Support Center
Contact the issuer's investor relations team via the contact information provided in your DealMaker dashboard.
This guide is for informational purposes only and does not constitute legal or financial advice. Always consult with a professional advisor for guidance specific to your situation.