Our new service of reasonably confirming investor accreditation for 506(c) offerings is now online! The API doc’s where published today, and it’s also built into our one-click Invest Now buttons. Cost is $30 per investor (per year, regardless of how many investments they make).

The crazy thing is that this is a service we really didn’t want to do. We wanted others to do it. But we got so much encouragement/pushing from our platform customers that we ultimately caved in and built it.

  • User experience is embedded in your site (no linking users to an external site, no separate user log-on system or credentials req’d);
  • Full stack of SEC tests are employed, starting with least-friction (have they invested in the issuers prior 506b offerings and do they attest that they are still accredited), going to the next levels of lesser-friction (are there public records available), moving to third party confirmations (from the investors CPA, lawyer, broker or RIA) and finally progressing to highest-friction (requiring tax returns or financials) only if and when all other means of confirmation can’t get it done;
  • Confirmation letter will be issued by our broker-dealer, which carries the same regulatory weight as if the letter were issued by a law firm.

This is a lot of hand work for us. We employ a two step system where…
1. an examiner reviews the file and obtains appropriate supporting doc’s, and then,
2. a firm Principal authorizes and issues the letter.

Thus it is only available to our customers in conjunction with our other services and not as a standalone app. And of course you don’t have to use this service, you’re welcome to continue to use other providers…heck, I’m always quick to recommend VerifyInvestor.com to people.

We continue to provide tools and services to reduce friction and make it as easy as possible for our platform customers to conduct compliant, technology-driven securities offerings. This is a great new service for you. And we have some more extremely cool things coming soon.