Since early stage companies are considered high-risk investments, many countries have laws requiring potential investors to meet minimum income requirements before being allowed to participate in these investments.
Each country has its own laws pertaining to investors. One’s country of residence is the country in which you pay taxes.
In order to invest in early stage companies, the United States government requires investors to have an annual income of $200,000 ($300,000 if filing joint) for the last two years. The expectation being that their income level will continue or that they will have a net worth of $1M, not including primary residence. Upon an investor’s first commitment to invest in a company, Bseed will provide a checklist and letter for the investor to have signed by one of the following professionals to verify their accredited status:
- A registered broker-dealer
- A registered investment adviser
- A licensed attorney in good standing, or
- A registered CPA in good standing
The letter is valid for a year. After a year has passed an additional letter is needed from one of the professionals listed above to certify that you still meet the US Government requirements. This not a Bseed-only requirement, in fact every company that offers these types of investments must have a letter on file from each investor who makes an investment after September 23, 2013.
If you have any questions about the accreditation process, don’t hesitate to contact us for guidance.
Countries Other Than the US:
Please contact us since each country is unique in its requirements.