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Accreditation for Startup Investors: E.U. 🇪🇺

By OURCROWD 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 the E.U.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...

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Accreditation for Startup Investors: U.S. 🇺🇸

By OURCROWD 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 the U.S.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...

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SPAC 101: A beginner’s guide to investing in the SPAC route to a startup exit

What is a SPAC and Why Should I Care? Over the past year special purpose acquisition companies (SPACs) have become the hottest commodity in the initial public offering (IPO) market. A few years ago, SPACs were rare and were considered by many to be somewhat disreputable: it was felt that only a company that wasn’t strong enough to go the traditional IPO route would go public via a SPAC. That changed dramatically last year. In 2020, SPACs raised half as much money as traditional IPOs, and, as reported by Reuters, for the first quarter of 2021 they’ve raised 76% as much money as traditional IPOs. Clearly SPACs are a hot ticket in the world of finance right now. Two of OurCrowd’s portfolio companies – Arbe Robotics and Innoviz Technologies – have exited via SPAC, and we expect more to follow. However, the recent boom in SPAC offerings is drawing additional scrutiny from regulators, which may put a damper on the current frenzy. The US Securities and Exchange Commission (SEC) is concerned because a number of companies that went public...

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5 REASONS INVESTING IN STARTUPS JUST GOT EASIER: LEARN ABOUT THE NEW SEC GUIDELINES

By OURCROWD The decision by the US Securities and Exchange Commission (SEC) to expand its definition of an “accredited investor” paves the way for thousands more aspiring venture capitalists and angel investors to benefit from investing in the private markets. The new rules, which took effect Dec. 8, 2020, will further democratize the ability to invest in startups before they go public, allowing more investors to enjoy the often outsize pre-IPO returns accessible until now only to institutions and high net worth individuals. Before the changes, “accredited investors” were defined as the following: Individuals with more than $1 million in net worth (excluding the value of any primary residence) or who have earned more than $200,000 per year (or $300,000 with a spouse) in each of the last two years.Related parties to the issuer of securities, including its executive officers and directors.Certain specified organizations with more than $5 million in assets.Institutional investors such as banks, and other entities which meet certain legal criteria. The following are now added to the definition of “accredited investors”: A person who holds in...

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