Who can invest through Shadow Foundr?
To sign up to our platform, investors must fill out our on-line questionnaire or sign up as one of the categories listed below. Applications will then be subject to review by Shadow Foundr, prior to investors being accepted onto the platform. This process is necessary because we need to know that you understand the nature and risks of these types of investments.
All potential investors will be subject to a client categorisation and must meet and sign up to one of the following categories, before being able to sign up to the website/platform as a new investor:
- Certified as a “high net worth investor” (HNI) – with an annual income in excess of £100,000 or net assets of £250,000 (excluding primary residence, any benefits in the form of pensions or otherwise and any rights under certain contracts of insurance).
- Certified or self-certified as a “sophisticated investor” - assessed by an FCA authorised firm as sufficiently knowledgeable to understand the risks associated with engaging in investment activity or self-certifying where the individual falls within one of the categories set out in the FCA rules.
- Where the FCA-authorised firm concerned will comply with the “suitability” requirements in the FCA rules or, alternatively, the customer has confirmed before the communication is made that another FCA-authorised firm will comply with the suitability requirements.
- Certified as a “restricted investor” – an individual who has not invested more than 10 per cent of their net assets in non-readily realisable security (net assets for these purposes does not include any primary residence, any benefits in the form of pensions or otherwise and any rights under certain contracts of insurance).
Shadow Foundr has three categories of investor for the purposes of the registration of new investors to the applicant firm’s website/platform:
- Certified High Net Worth Individual (This is applicable to an investor who earns more than £100,000 a year or have net assets of more than £250,000).
- Self-Certified Sophisticated Investor (This is applicable if an investor has invested in more than one unlisted company in the last two years or been a member of a business angel syndicate or network for at least six months).
- Regular Investor (This applies to most investors who are not advised and are not professional investors and do not invest more than 10% of their net assets into unlisted company shares or unlisted debt securities).