The information contained on this page has been compiled, as of its date of publication, with considerable care to ensure investors are informed. The purpose of this page is to provide you with general information about qualified investors residing in Canada.
The information provided should not be considered as investment or other advice or a recommendation to buy, sell, or hold a particular investment. No representation or warranty, express or implied, is made to the accuracy or completeness of the information.
OurCrowd’s platform is currently set up to accept members with a “Qualified”, “Accredited”, “Sophisticated”, or “Professional” accreditation status in their country of residence. What are the criteria, and what actions are required on your part? We have a general answer for you below. Please note: for specific questions about the qualifications of your investor status, contact OurCrowd.
Why must I be accredited or be a qualified investor?
Early stage, privately-held companies are high-risk investments, and therefore many countries require individuals to meet certain financial criteria before being allowed to participate in these investments.
What are the overall criteria of qualification/accreditation?
OurCrowd follows the rules of your country of residence – the one in which you pay taxes. These rules vary country by country, but many address the following two questions:
- What are the criteria to qualify as a Qualified/Accredited investor, e.g., what is the minimum level of income and/or net worth, and the knowledge and experience investors need to meet in order to participate in certain types of investments?
- What proof do investors have to give in order to proof they meet these criteria?
🇨🇦 Criteria of qualification for investors residing in Canada:
In Canada, an accredited Investor is defined by the provincial securities commissions throughout the country. However, the Canadian Securities Administrator (CSA) serves as an umbrella organization to streamline regulation of Canadian capital markets. As such, in general, in Canada, to be an accredited investor, one must:
- Alone or with a spouse, beneficially own financial assets worth CAD$ 1 million or more (before taxes but net of related liabilities); or
- Alone or together with a spouse have net assets of at least CAD$ 5 million;
- Have net income before taxes exceeding CAD$ 200,000 in each of the two most recent calendar years, or net income before taxes, combined with that of a spouse, exceeding CAD$ 300,000 in both of the last two years, and in either case reasonably expect to exceed that net income level in the current calendar year; or
- An individual who currently is a registered adviser or dealer, other than a limited market dealer;
- Companies with net assets of at least CAD$ 5 million.
🇨🇦 Paperwork for investors residing in Canada:
Investors residing in Canada self-certify that they meet the above criteria when accessing OurCrowd’s site. This grants them full access to OurCrowd’s site. However, making an investment requires additional verification of a Canadian investor’s accredited status (see Staff Notice 33-735). Upon an investor’s first commitment to invest in a company, OurCrowd will provide a checklist and letter for the investor to have signed by one of the following professionals to verify their accredited status:
- A registered broker-dealer
- A registered investment adviser
- A licensed attorney in good standing, or
- A registered CPA in good standing
Please note that this not an OurCrowd-only requirement. Every company that offers these types of investments must have a letter on file from each investor who makes an investment.
For more information: If you have any questions about the accreditation process, don’t hesitate to contact us for guidance.