To be an accredited investor, a person must have an annual income exceeding $200,000 ($300,000 for joint income) for the last two years with the expectation of earning the same or a higher income in the current year.

Who can certify you as an accredited investor?

Who Can be an Accredited Investor?

  • Banks.
  • Brokerage firms.
  • Employer-sponsored retirement plans.
  • Certain trusts.
  • Registered Investment Advisor (RIA) firms.
  • Limited liability companies with $5 million in assets.
  • SEC- and state-registered investment advisers.
  • Exempt reporting advisers.

Does Equityzen check if you are accredited?

There is no process by which an individual “becomes” an accredited investor. No government agency checks an investor’s qualifications prior to a private placement transaction. Rather, it is the responsibility of the company offering private placements to determine if the investor is accredited.

Is a CPA an accredited investor?

The SEC has discussed allowing persons with other professional credentials or licenses to qualify as accredited investors. Those with CFA and CFP designations have been considered as have licensed CPAs and attorneys.

Is EquityZen a legitimate company?

Yes, EquityZen is “legit” in the sense that it is a legitimate, regulated business and a legitimate alternative investment oppoortunity for accredited investors. EquityZen is among a growing crop of crowdfunding and online alternative investment platforms, most of which have launched in the wake of the 2012 JOBS Act.

Can you make money with EquityZen?

Yes, EquityZen is legit. I have invested in 5 companies over the past 2.5 years. So far I had 2 (very profitable) exits (Pinterest and Palantir). The other 3 companies are doing really well, but they are still private.

What happens if you invest as a non-accredited investor?

In many jurisdictions, non-accredited investors are given by law a right of rescission — sometimes in perpetuity. This means that the non-accredited investor has a right to undo the investment transaction and get their money back — maybe years later.

How much do I need to invest in EquityZen?

Companies need to have at least $50 million in enterprise value to be listed on the marketplace. The minimum investment amount for investors is $20,000. Financial Advisors, who manage capital on behalf of others, invest their clients’ capital through the platform.

Is EquityZen a good investment?

Is EquityZen legit? Yes, EquityZen is “legit” in the sense that it is a legitimate, regulated business and a legitimate alternative investment oppoortunity for accredited investors.

What is the minimum investment in EquityZen?

The minimum investment amount for investors is $20,000. Financial Advisors, who manage capital on behalf of others, invest their clients’ capital through the platform. Investors outside of the US have invested in private companies.