The Financial Conduct Authority (FCA), one of the UK financial services regulators, has categorised investors into 'types' to determine whether an individual is able to invest in unlisted shares. It also dictates the degree of protection an investor is given and how we promote investments via the VentureFounders platform. Only the three categories of investors set out below are able to invest through VentureFounders.
If you are unable to confirm what type of investor you are, under the FCA’s rules, you cannot invest via VentureFounders.
High Net Worth Investors
High Net Worth investors must:
- have an annual income of £100,000 or more; or
- hold net assets of £250,000 or more. Net assets for these purposes do not include your primary residence or any money raised through a loan secured on that property; any rights of under a contract of insurance; or any benefits (in the form of pensions or otherwise) which are payable on the termination of your employment or on your death or retirement).
Advised investors are investors who will receive, in relation to each investment, investment advice or investment management services from a professional adviser authorised by the FCA.
Self-Certified Sophisticated Investors
Self-certified sophisticated investors must:
- be a member of a network or syndicate of business Angels and have been so for at least the last six months;
- have made more than one investment in an unlisted company in the last two years;
- be working, or have worked in the last two years, in a professional capacity in the private equity sector, or in the provision of finance for small and medium enterprises; or
- be, or have been in the last two years, a director of a company with an annual turnover of at least £1 million.
If you have any doubts about whether you fall under one of these categories, before you invest please contact us.