On the income test, the person must satisfy the thresholds for the three years consistently either alone or with a spouse, and cannot, for example, satisfy one year based on individual income and the next two years based on joint income with a spouse. The only exception is if a person is married within this period, in which case the person may satisfy the threshold on the basis of joint income for the years during which the person was married and on the basis of individual income for the other years. In addition, entities such as banks, partnerships, corporations, nonprofits and trusts may be accredited investors. Of the entities that would be considered accredited investors and depending on your circumstances, the following may be relevant to you:
In this context, a sophisticated person means the person must have, or the company or private fund offering the securities reasonably believes that this person has, sufficient knowledge and experience in financial and business matters to evaluate the merits and risks of the prospective investment.
To qualify as an accredited investor under the net worth test, you must have a net worth that exceeds $1 million, either alone or with a spouse. If calculating joint net worth with a spouse, it is not necessary that property be held jointly. Calculating net worth involves adding up all your assets and subtracting all your liabilities. The resulting sum is your net worth.The value of your primary residence is not included in your net worth calculation. In addition, any mortgage or other loan on the residence does not count as a liability up to the fair market value of the residence. If the loan is for more than the fair market value of the residence (i.e., if your mortgage is underwater), then the loan amount that is over the fair market value counts as a liability under the net worth test.
The US Securities and Exchange Commission has a helpful guide here: https://www.investor.gov/additional-resources/news-alerts/alerts-bulletins/updated-investor-bulletin-accredited-investors
Rule 506(c) of Regulation D is an exemption from the security laws governing the issuance of securities. Offerings relying on this exemption are a type of Private Placement. Recognizing the need for small and early-stage businesses to be able to access capital. In 2013, this new rule and associated SEC regulations was adopted and implemented to allow issuers to broadly solicit and generally advertise the offering. However, two investor protection elements apply to these offerings –
Keep in mind that private placements can be very risky and any investment may be difficult, if not virtually impossible to sell.
Investors will find an issuer's Private Placement Memorandum on the offering page. This Memorandum includes investment risks, company financials, use of proceeds, and other information necessary to make an investment decision. The Memorandum should be reviewed carefully before investing in the offering.
Your IOI may be automatically confirmed at the end of the Two-Hour Confirmation window if the final IPO price is:
The above is the Automatic Confirmation Range, which means your IOI will be accepted unless you choose to cancel that IOI during the Two-Hour Confirmation window (you may receive a final allocation less than the maximum amount you requested). When your order is accepted, you will receive an email notifying you of your purchase.
If you did not receive an allocation, it may be for the following reasons: