How to Find Accredited Investors for Your Startup

How to Find Accredited Investors for Your Startup
How to Find Accredited Investors for Your Startup

How to find accredited investors? Accredited investors are permitted individuals or entities that can invest in private equity or hedge funds. Finding and verifying these accredited investors is very important if you need to raise capital for your startup or small business. You can find them in many ways: personal networks, industry events, online platforms, financial institutions, or professional services. Very important: verify these investors. The 20 best websites to find accredited investors, venture capital funds, or an angel investors.

How Does Accreditation Matter?

This is all the more important because accreditation helps in qualifying investors based on certain financial standards and also in adjudging if such investors are capable enough to evaluate investment risks. Rule 501 sets standards based on income and net worth for qualifying investors as accredited investors.

Title II of the JOBS Act and Rule 506(c) of Regulation D give permission to sell securities only to accredited investors in case of private offerings where general solicitation is resorted to. Proper verification of accreditation status protects both the investors and the businesses that offer the securities, ensuring compliance with legal requirements and promoting informed investment decisions.

How to Find Accredited Investors?

Do you need investment capital to finance your start-up or small business?

How to find accredited investors?  Remember, if you are looking for investment capital to finance your start-up or small business, then accredited investors are the crowd to be approached. After the lift of the ban on general solicitation under Title II of the JOBS Act, public companies can now solicit from accredited investors.

Then again, you will need to find and verify accredited investors. An accredited investor is considered to meet the requirement under Rule 501 and is verified by taking the appropriate “reasonable steps.” Securities can be sold only to accredited investors under the general solicitation, like those under Rule 506(c) of Regulation D. This way, your fundraising is not only regulatory compliant but also targeted at the right audience.

The Validation Process

The process of validating accredited investors carries in itself the importance for compliance and protection in the matter. There are several ways of how the issuer may verify the status of the investors. Third-party review services are one of the efficient ways that can save both time and money for the issuer.

However, it is important that the said services are reliable and legally compliant, often requiring reviews of licensed attorneys. How to find accredited investors?  Verification in such a way guarantees that private offerings will contain only qualified investors, maintain the standards of the regulatory framework, and cause trust toward the investment process.

Discovering Potential Investors

How to find accredited investors? Finding appropriate investors can really be a challenge, but there are several ways to do it. Begin with personal networks: family, friends, colleagues, and business associates. Attending industry-related events and conferences that deal with private equity or venture capital makes it possible to stumble on potential investors.

Currently, there are online platforms that connect investors with projects looking for capital. Financial institutions as well as a network of angel investors can also link you up with the right investors through their events and seminars. Professional services, including financial and accounting advisors and lawyers, could really be helpful in terms of connections and recommendations for potential investments.

20 Websites for Accredited Investors and Venture Capital Funds

  • Gust
  • Humanitarian
  • EquityNet
  • Humane
  • CircleUp
  • SeedInvest
  • FundersClub
  • Submit
  • EarlyShares
  • Crowdfunder
  • MicroVent
  • Human funder / Human
  • Angel Capital Association
  • The National Venture Capital Association
  • Keiretsu Forum
  • Y Combinator
  • The Tech Coast Angels
  • BizEquity

Here are some of the top Angel Investors:

  • Y Combinator
  • Sequoia Capital
  • Andreessen Horowitz
  • Union Square Ventures
  • Accel Partners
  • Kleiner Perkins
  • Index Ventures
  • SV Angel
  • First Round Capital
  • Greylock Partners
  • True Ventures
  • Fuel Capital
  • Floodgate
  • Upfront Ventures
  • Kapor Capital
  • 500 Startups
  • Techstars
  • Golden Seeds
  • FF Venture Capital
  • Hyde Park Angels

Bottom Lines

How to find accredited investors? Finding and verifying accredited investors is the final solution to acquiring investment capital for any startup or small business. With the power of personal connections, attending industry-related meetings, the online platform, and seeking help from financial institutions and professional services, one would be successful in contacting and reaching potential qualified investors.

Validating the accreditation status not only satisfies the requirements of regulators, but it would also ensure confidence and trust in the investments you are offering. Given the best strategies and resources, locating accredited investors becomes an easy and possible task.

Frequently Asked Questions

Who Is An Accredited Investor?

An accredited investor is an individual or an entity that a regulatory body has accredited to make investments in types of investments like private equity or hedge funds.

Why is it being accredited important to an investor?

In the same vein, accreditation ensures that only qualified investors become a part of the special financial criteria in private offerings, having an understanding of investment risks.

How can I identify accredited investors?

Accredited investors can be sourced through personal networks, industry events, online platforms, financial institutions, and professional services.

Which are the online platforms to access the accredited investors?

Other popular platforms are AngelList, Gust, OurCrowd, EquityNet, and Fund.

How do I confirm if an investor is accredited?

The verification can be done by third-party review services, financial advisors, or licensed attorneys to ensure compliance with regulatory standards.

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