FSE Listings

Globally there are exemptions for raising capital for a myriad of monikers to describe sophisticated investors. The most common names are qualified investors, accredited investors, professional investors, high net worth investors, and of course sophisticated investors.

What are the benefits of a Sophisticated Investor Database for raising capital as a business (SME)?

• Small businesses can raise any amount of funds from sophisticated investors
• Small businesses do not have to go through the costly prospectus documents required, however, most jurisdictions require firms to report the sophisticated investment
• Sophisticated Investors are often “angel investors” for businesses
• As a firm doing an IPO offering, having a third party verified list of sophisticated investors prequalifies the investor before marketing to them
• Sophisticated investors can receive promotions and marketing exempt of most rules with regard to solicitation
• Sophisticated Investors can invest in funds, Collective Investment Schemes, crowd funding and other such investment concepts without having the cost of being regulated

In most jurisdictions, the certification can occur at the time of the subscription or purchase of the securities, however, it is often “second guessed” by regulators when firms “raising the money” do their own “qualifying” of investors. This can lead to offerings falling foul of the exemption. However, a third party verification system is infallible with this regard and offers a convenient method for Unregulated Collective Investment Schemes, Small Private Offerings, Public Offerings, Funds, and Debt offerings such as bonds and debentures to “pre-qualify” existing databases by working with a third party firm to vet their data and produce unbiased results.

The only firm that privately offers third party verification of investor information and supplies certificates for signing by the investor ishttp://www.sophisticatedinvestorregister.com.

As a service provider to the financial markets one can subscribe to the service to access:

• Weekly new sophisticated investors (limit of 500 per week)
• Data cleaning and qualification of existing databases of shareholders
• Email distribution and SMS alerts to opt-in members

The sophisticated investor register maintains that the certification is always made within “12 months” of the investments, and assists investors in renewing the certificates. The documentation is generally sent to the local jurisdiction for further verification and admission of the investor to “government” databases that further verify the authenticity of the sophisticated investor register.

If you are a company interested in raising capital, you should consider subscribing to the sophisticated investor register today!