By OURCROWD

The information contained on this page has been compiled, as of its date of publication, with considerable care to ensure investors are informed. The purpose of this page is to provide you with general information about qualified investors residing in the E.U.
The information provided should not be considered as investment or other advice or a recommendation to buy, sell, or hold a particular investment. No representation or warranty, express or implied, is made to the accuracy or completeness of the information.

OurCrowd’s platform is currently set up to accept members with a “Qualified”, “Accredited”, “Sophisticated”, or “Professional” accreditation status in their country of residence. What are the criteria, and what actions are required on your part? We have a general answer for you below. Please note: for specific questions about the qualifications of your investor status, contact OurCrowd.

Why must I be accredited or be a qualified investor?
Early stage, privately-held companies are high-risk investments, and therefore many countries require individuals to meet certain financial criteria before being allowed to participate in these investments.

What are the overall criteria of qualification/accreditation?
OurCrowd follows the rules of your country of residence – the one in which you pay taxes. These rules vary country by country, but many address the following two questions:

  1. What are the criteria to qualify as a Qualified/Accredited investor, e.g., what is the minimum level of income and/or net worth, and the knowledge and experience investors need to meet in order to participate in certain types of investments?
  2. What proof do investors have to give in order to proof they meet these criteria?

🇪🇺 Criteria of qualification for E.U. investors:

Within the EU, to be an elective professional investor (so-called ‘opt-up professionals’), one must meet a minimum of two of the following three criteria:

  1. Carried out transactions of ‘significant’ size, (at least EUR 50,000) on the relevant market at an average frequency of 10 transactions per quarter over the previous four quarters.
  2. Works (or has worked) in the financial sector for at least one year in a professional position, which requires (or required) knowledge of the transactions or services envisaged.
  3. The size of the investor’s financial instrument portfolio (defined as cash deposits and financial instruments) exceeds EUR 500,000.

Entities, such as credit institutions, investment firms, insurance companies, collective investment schemes, and pension funds are qualified to be registered as a professional client per se, as long they meet two of the following size criteria:

  1. A balance sheet with a total of EUR 20,000,000; or
  2. A net turnover of EUR 40,000,000; or
  3. Funds of EUR 2,000,000.

🇪🇺 Paperwork for EU investors:

Qualitative Test: When an EU investor meets the above-mentioned criteria (subject to verification by OurCrowd), then OurCrowd will conduct an assessment of the expertise, experience, and knowledge of the investor that gives reasonable assurance, in light of the nature of the transactions or services envisaged, that the investor is capable of making her/his own investment decisions and understanding the risks involved.

Supporting Documents: OurCrowd requires EU investors to provide proof of their accredited status and based on the provided documents, such as a bank statements and/or brokerage statements, a letter from employer or a description of previous job posted on LinkedIn or provided by the company, the qualification assessment will be conducted.

Written Statement: EU investors must state in writing that they wish to be treated as a professional investor, either generally or with regard to a particular service, transaction, or type of transaction or product. To that end, we would like you to state in writing, in a document separate from the contract, that you are aware of the consequences of becoming an elective professional investor. OurCrowd will inform you about your classification in writing and provide you a clearly written and easy to understand overview of your protections and investors’ rights.

With this request and approval by OurCrowd, investors get access to OurCrowd’s site and company portfolios.

Please note that this not an OurCrowd-only requirement. Every company that offers these types of investments must comply with the EU’s investors protection laws.

Change of Situation: Professional investors are also responsible for informing OurCrowd of any change in circumstances that could affect their categorization. However, should we become aware that you no longer fulfill the initial ‘Professional Classification Conditions,’ we will inform you and appropriate action must be taken. An example of this is if we become aware that the size of your investment portfolio has fallen below the EUR 500,000 threshold, if that was one of the criteria upon which you opted up for professional client status.

For more information: If you have any questions about the accreditation process, don’t hesitate to contact us for guidance.