Under SEC regulations, individuals must be accredited investors to invest through AngelList. The AngelList Investor Application gathers details about an investor’s background, including their investment history and knowledge of startups, and confirms how much they plan to invest. It also verifies their accreditation status. By reviewing this information, AngelList ensures that deal-by-deal investing is appropriate for each individual. Once an investor passes the application, they can browse and apply to firms on the platform.
Do all investors need to pass the AngelList Investor Application?
Not all investors need to pass the AngelList Investor Application. If a Lead personally invites an investor with whom they share a pre-existing substantive relationship, that investor can participate in a fund or a specific SPV deal without completing it. However, investors who want to broadly discover and join firms must complete and pass the application first.
Do investors need to pass the AngelList Investor Application to back a firm's deals?
When it comes to backing a firm, it depends on how an LP is invited. If a Lead sends a personal email invitation, the LP does not need to fill out the Investor Application. If an LP finds the firm via AngelList, they must complete and pass the application before gaining access to the respective deals. This process helps AngelList maintain a qualified pool of investors who fully understand the risks and rewards of venture investing.