We've made some important updates to the Reg D 506(c) investor checkout process, specifically focusing on the verification section, to make the experience smoother and more transparent for investors. Here's a summary of what's new:
Accreditation Document Upload Moved to Checkout
Instead of having the document upload screen for accreditation documents live on a separate page that appears post checkout, the document component has now been integrated directly into investor checkout experience.
Enhanced Verification Options
The verification section has been updated to allow investors who confirm they are accredited to simultaneously select their accreditation category and upload supporting documents. There are now three document upload options available for all investor types (Individual, Corporation, Trust, Joint-holder), with help text that slightly differs based on the investor profile.
The three verification options are:
1) *New* Third-Party Email Verification: Investors can now send an email directly from the platform to a CPA, lawyer, broker, or investment advisor to verify their accredited status. This email is sent after the investor's investment is funded. The verifier will receive an email from DealMaker (with the investor CC'd) requesting verification and directing them to a form to provide their details and verify or deny the investor's status. If the third party verifies the investor's status, an e-signed document is uploaded to the investor’s profile on DealMaker and sent to the DealMaker verification team for review. If they cannot verify, the investor will be prompted to use another verification method.
Note* This part of the UI is identical for all investor profile types.
Email sent to third-party:
Form 3rd party fills out:
Document uploaded on behalf of the user (the e-signed 3rd party form)
Upload a Signed Third-Party Verification Letter: This option allows investors to upload a pre-filled and signed third-party letter that verifies the investor's status as an accredited investor. Investors can also download a template for this letter.
Upload Direct Proof of Income or Assets: Investors can upload documents that directly prove their income or assets to demonstrate their accredited investor status. The instructions for what documents to upload are tailored based on the investor's profile type (individual, corporation, trust, etc.) to help alleviate confusion.
For Individual and joint-holder Investors:
For Corporation Investors:
For Trust Investors:
Skipping Document Upload:
Investors also have the ability to skip verification initially and complete it later, and they will receive reminder emails. They will also see a message in the checkout that informs them they must upload proof of accreditation for their investment to be accepted.
Improvements to the “New Documents Requested” Experience
If an investor's uploaded documents are insufficient and our verification team requests new documents, the investor will now be directed back to the checkout within the same section they initially used to upload.
A significant improvement is that the verifier's reason for rejecting documents will now be clearly visible as a red notice within the checkout itself, mirroring the information provided in the email notification. This allows investors to use the same document upload component to easily resubmit documents until they are approved.
New Front-End Badge Statuses
To keep investors informed about their verification progress, we've introduced new front-end badge statuses in the verification section. These statuses include:
- Action Required: Indicates that documents need to be uploaded.
- Review Pending Payment: Shown if documents have been uploaded but payment hasn't been completed; the accreditation review is pending payment.
- Pending Review: Means the investor has paid, submitted documents and is awaiting review by the internal DealMaker verification team.
These statuses are designed to provide investors with a clear visual of where they are in the verification process.
Reusable Documents
For investors whose documents have been approved in a previous Reg D 506(c) offering powered by DealMaker, we've introduced the functionality of reusable documents.
Investors can reuse approved documents for:
- 90 days across any other 506(c) offering powered by DealMaker.
- Five years for any other 506(c) offering powered by DealMaker that is run by the same issuer from which their documents were first approved.
This feature simplifies the process for returning, approved investors, as their saved documents will appear in the checkout when the same investor profile is selected.