Whether you need to provide evidence of your accredited investor status depends primarily on the type of fund. For 506(c) funds, which can be publicly advertised, the SEC mandates that fund managers take “reasonable steps” to verify accreditation. This verification is required because these funds are marketed to a broad audience, and SEC rules ensure that only accredited investors participate. To verify accreditation, managers often request documentation, such as tax returns or bank and brokerage statements, and may also rely on attestation letters from financial professionals like CPAs or attorneys. This extra scrutiny is necessary given the public reach of 506(c) offerings and is a key compliance step for fund managers choosing this route. For more information on the types of evidence we can accept based on entity type, please click here.
In contrast, 506(b) funds are limited to private networks and do not permit general solicitation or public advertising. These funds generally allow investors to self-certify their accredited status, which involves filling out a form to confirm they meet income or net worth requirements. Most venture and private equity funds operating under 506(b) keep to accredited investors only, avoiding the added burden of significant compliance and detailed disclosures. Self-certification without document verification streamlines the process, but investors should be accurate and truthful, as false information carries legal consequences.
By following the required steps during onboarding, you’ll be aligned with the necessary compliance measures. For 506(c) funds, AngelList will prompt you to provide documentation to verify your accredited status in accordance with SEC requirements. For 506(b) funds, self-certification is generally sufficient, provided the fund limits participation to accredited investors within established networks.