Accredited Investor Information
Understanding offering types and investor qualifications.
Types of Offerings
tgfund facilitates these type of primary offerings:
- Regulation A offerings (JOBS Act Title IV; known as Regulation A+), which are offered to non-accredited and accredited investors alike. These offerings are made through tgfund (unless otherwise indicated).
- Regulation D offerings (Rule 506(b)), which are offered to accredited and sophisticated investors. These offerings are made through tgfund.
- Regulation Crowdfunding offerings (JOBS Act Title III), which are offered to non-accredited and accredited investors alike. These offerings are made through tgfund.
Some of these offerings are open to the general public, however there are important differences and risks.
Defining a "Sophisticated Investor" for 506(b) Offerings
In the context of crypto offerings, determining if a non-accredited investor is sophisticated requires assessing their understanding of the unique aspects and risks associated with digital assets. This can involve evaluating their knowledge of:
- Blockchain technology: How the underlying technology works, including concepts like decentralization, consensus mechanisms, and cryptography.
- Cryptocurrency markets: The volatility, liquidity, and regulatory landscape specific to crypto assets.
- Tokenomics: The design and economic principles of the specific crypto asset being offered, including its utility, distribution, and potential for price fluctuations.
- Security risks: The potential for scams, hacks, and other vulnerabilities in the crypto space.
- Legal and regulatory considerations: Understanding the evolving regulatory environment for crypto assets and its impact on the investment.