Understanding crowdfunding for accredited investors
As an accredited investor, you've reached a significant milestone on your financial journey. Accredited investors are individuals who have demonstrated a high level of financial sophistication, often through substantial income or net worth. Explore the realm of investment crowdfunding.
Who qualifies as an accredited investor?
Accredited investors are individuals or entities meeting specific financial criteria, allowing them access to unique investment opportunities that may not be available to the general public. The Securities and Exchange Commission (SEC) defines accredited investors as those with an annual income exceeding $200,000 (or $300,000 for joint income) or a net worth exceeding $1 million, excluding the value of their primary residence.
Project evaluation
At RealRise Capital, we take our commitment to providing exceptional offerings seriously. Our robust internal review process is designed to support platform onboarding and review of issuer-provided materials. Issuer submissions are reviewed for eligibility, documentation completeness, and platform onboarding requirements. Not all submissions proceed to listing.
An insight into our evaluation process
Business plan & deal underwriting
Our team reviews issuer-provided business plan materials and underwriting to assess the risks associated with the project.
Core competency assessment
We consider whether the proposed project aligns with the core competencies of the sponsor and whether their expertise and team are a match for the plan.
Market data & assumptions
We require that deal assumptions are supported by comprehensive market data to back the assumptions described in the issuer materials.
Financial review
We review the financials of the project, with options for self-certification, review by a CPA, or full CPA audit based on the capital raising goals.
Background check on stakeholders
Third-party partners conduct background and bad-actor checks (including KYC and AML) on the issuing entity and every individual with a 20% or greater interest.
Track record review
We review prior project experience to evaluate a history of success, recognizing that past performance does not predict future outcomes.
Sponsor experience & team
We review the experience and background of the team to assess whether they have relevant expertise for the proposed business plan.
Exit strategy analysis
We ask sponsors to describe anticipated exit considerations, aiming for adaptability in response to changing market conditions.
Sources of funding
We inquire about the company's other sources of funding, assessing the extent of needed capital and leverage from other sources.
Professionalism & industry standards
Our team assesses the professionalism and industry adherence of all project materials to ensure they meet or exceed established standards.
Regulatory obligations
We inform companies of their responsibilities as issuers and educate them on their function concerning the marketing and selling of securities.
Investing in securities carries significant speculative elements and involves certain risk factors. Our internal review process is designed to support platform onboarding and review of issuer-provided materials. Despite our efforts to analyze the opportunities listed on our site, we encourage all investors to thoroughly perform their own due diligence based on the information provided.
Exploring potential investment opportunities
Accredited investors may use crowdfunding as one way to consider portfolio diversification.
By participating in crowdfunding offerings, accredited investors may gain access to investment opportunities they might not otherwise encounter, without direct involvement in day-to-day business operations.
Explore our offerings and unlock access to private investment opportunities.
Browse offerings →How can I verify my accredited investor status?
During the investment process you will self-certify by inputting information about your annual income and net worth.
What are the benefits of crowdfunding for accredited investors?
Crowdfunding offers accredited investors an accessible opportunity to diversify their investment portfolios. By participating in offerings, you can gain exposure to private businesses without the challenges of direct operations, leveraging your financial expertise with a relatively low barrier to entry.
What is the minimum investment required for accredited investors?
The minimum investment amount is set by the issuer, and you can find these details on the offering page. Because our platform accommodates both accredited and non-accredited investors, accredited investors essentially have no specific minimum investment requirement.
Are there tax implications for accredited investors?
There can be tax implications when investing in securities. Treatment can vary based on the structure of the investment and your situation, so consult a tax professional. As an investor, you will receive the pertinent end-of-year tax documentation, such as a K-1 form for each project in which you are invested.
How can I access information and updates on my investments?
Within the best of our ability, RealRise Capital works with issuers to send out project updates regarding the performance of the business and any potential gains or losses.
What fees and costs are associated with investing?
There are no fees associated with investing on our platform, but transaction fees may be incurred when placing an investment.
Can I invest via my company?
You may invest via your company. Additional documentation will be required to complete and verify the investment transaction.