AngelEquity’s purpose is to enable both angel investors and wholesale investors to invest in angel-backed deals.
But just who are wholesale investors? In New Zealand a wholesale investor can be an eligible investor, a wealthy person or finance professional.
An Eligible Investor
To be an eligible investor you must be able to answer ‘yes’ to one of the following:
- I have previously invested in early-stage, startup or established businesses.
- In the course of my investment activities, I have been involved in investor presentations and/or due diligence meetings and through this have gained an appreciation for the risks and opportunities associated with early stage investing.
- I have served as a Director of an early stage business that was involved in capital raising.
- I have experience in investing in shares and other securities (listed and unlisted), understand the risk with investing in different types of financial products and recognise that investment as a business angel is generally of a significantly higher risk profile than most listed investment opportunities.
- I currently hold a diverse portfolio of investments and I regularly review my own investment portfolio, with the benefit of advice from relevant professionals where appropriate, and make my own investment decisions in relation to my portfolio.
- In the course of my investment activities, I am exposed to a wide range of investment analysis and commentary and this has helped me build up my knowledge and skills in assessing the value and risks of investing in financial products.
- I have other relevant experience of acquiring or disposing of financial products.
Wealthy person or Finance Professional
To qualify in this category you must be able to answer ‘yes’ to one of the following:
- My net assets, combined with the assets of entities I control, have exceeded $5 million for the two most recent financial years, or my total turnover including the entities I control exceeded $5 million for the two most recent financial years.
- I own, or at some time during the last two years have owned, a portfolio of “financial products”, which may have included debt securities, equity securities, managed investment products, and derivatives of a value of at least $1 million.
- I have in the last two years, carried out at least one transaction to acquire “financial products” where the amount payable (in aggregate) has been at least $1 million and the other parties to the transactions were not associates of mine.
- My principal business is investing in financial products.
- My principal business is providing a financial adviser service about financial products.
- My principal business is providing a broking service about financial products.
- I am in the business of trading in financial products on behalf of other people.
- Within the last ten years I have been employed in an investment business and, for at least two years during that period, I participated in the investment decisions made by that investment business.
- I am a QFE or an authorised financial adviser in New Zealand.
- I am investing $750,000 or more into a single company.