Can I decide in which companies I want to invest?

Yes. You can do this by allocating your investment to specific companies at the time you invest. You may also earmark some funds for the overall pool, so that you can take advantage of new equity crowdfunding investment opportunities as they are vetted. Whenever we bring new opportunities to investors, they always have the option to opt-out of funding a specific company.

How do I make an investment?

View the equity crowdfunding deals available to accredited investors in the Portfolio section of the website. There you will have access to extensive material about each portfolio company, available to registered VCapital members only. You will also be able to interact directly with company management by participating in special webinars, calls or in-person meetings.

Once you have decided to make an investment, you will indicate your amount in the Investment Amount field. If your desired investment amount is more than we can accept for the company, we will make allocations based on a process that combines both a first-come/first-served and pro-rata calculation. We will send you deal documentation for signing and then transfer instructions.

The deal documentation includes your signed certification that you meet your country’s income, asset, and/or experience criteria. In the U.S., you must have a licensed professional (broker, lawyer, accountant, investment adviser) sign a letter that certifies that you qualify. More details are available on our accreditation page.
For further information, please don’t hesitate to contact us.
Register as an Accredited Investor

Can I invest money from my Individual Retirement Account (IRA)?

If you have established a “self-directed” individual retirement account (IRA), you are eligible to hold alternative assets within your tax-deferred plan, including private placements in venture capital. As with any IRA investment, a self-directed account has built-in, tax-deferred growth– meaning that you would not pay capital gains taxes on the growth of an investment until you are of retirement age and begin to withdraw the funds, presumably at a lower effective tax rate.

Who qualifies as an accredited investor?

US-based investors                        Other countries

For individual investors, the SEC defines an accredited investor as a natural person (as opposed to an organizational entity that may be considered a “legal person”): (1) who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of investment, excluding the value of the primary residence of such person; OR (2) whose income exceeds $200,000 in each of the two most recent years or whose joint income with a spouse exceeds $300,000 for those years and has a reasonable expectation of the same income level in the current year.

In addition, accredited investors include several categories of organizations and individuals within those organizations including:

  1. a bank, insurance company, registered investment company, business development company, or small business investment company;
  2. an employee benefit plan, within the meaning of the Employee Retirement Income Security Act, if a bank, insurance company, or registered investment adviser makes the investment decisions, or if the plan has total assets in excess of $5 million;
  3. a charitable organization, corporation, or partnership with assets exceeding $5 million;
  4. a director, executive officer, or general partner of the company selling the securities;
  5. a business in which all the equity owners are accredited investors;
  6. a trust with assets in excess of $5 million, not formed to acquire the securities offered, whose purchases a sophisticated person makes.

As a US investor, you may initially self-certify that you meet the above criteria when joining VCapital. This grants you full access to VCapital’s website and our extensive information on the portfolio companies. However, making an investment requires the additional, professional third-party verification of your investor’s accredited status. When you first commit to invest in a company, VCapital will provide a checklist and letter for you to have signed by one of the following professionals to verify your accredited status:

  • A registered broker-dealer
  • A registered investment adviser
  • A licensed attorney in good standing, or
  • A registered CPA in good standing

This third-party verification requirement is the result of SEC regulatory changes that came into effect September 23, 2013. Every company that offers these types of investments, not just VCapital, must have a letter on file for each investor who makes an investment after September 23, 2013.

If you have any questions about the accreditation process, please don’t hesitate to contact us for guidance.


Countries Other Than the US:

If your primary residence for tax purposes is outside the US, your country determines the minimum income or asset requirement that allows you to participate in venture capital investments. The sign-up process for VCapital is therefore country-specific; you check off the requirements that are satisfied and, when necessary, specify the reason that you meet each requirement.

All countries other than the US allow self-certification. As a foreign investor, once you have indicated that you want to invest in a particular company, VCapital will send you the documents including a self-certification of the requirements appropriate for your country of residence. When you sign the self-certification, your government accepts the declaration that you satisfy the criteria for an investor able to tolerate the level of risk that the investment represents.


If you have any questions about the accreditation process, please don’t hesitate to contact us for guidance.

Why is there a High Minimum Investment?

VCapital is not a crowdfunding site. We are a venture capital firm serving serious, discerning, experienced investors and groups.

Some of the crowdfunding sites may do well offering small investment minimums, but we think most will disappoint. Here’s why:

  • Minimum investment requirements tend to be so small—usually in the $1,000-$3,000 range—that even early-stage deals may require hundreds or even thousands of investors. Startups don’t want (or need) the administrative headaches of dealing with large crowds of investors.
  • Many sites offer dozens . . . even hundreds . . . of venture options. Truly disciplined screening and due diligence are impossible. These sites are more like investing lotteries than disciplined, venture capital investment opportunities.
  • Their overall results are likely to lag behind a venture capital firm like ours that is far more discriminating in our investment decisions. With our team’s average IRR of 29%, our track record speaks for itself.

Why should entrepreneurs partner with VCapital?

Our goal is to provide entrepreneurs with an easier, less costly and more appealing form of venture capital to develop their businesses.

For an early stage company, there is a high opportunity cost to raising funds. The best fundraiser is typically the company founder, who really needs to be involved full-time in the business. Taking 6-12 months to fundraise is a significant distraction and can derail the business.

Further, early stage companies are typically looking for $500k-$5 million in funding. This tends to be below the minimum threshold for institutional investors, yet is usually more than one can raise from friends and family or “professional” angels. If the institutional VC firm is willing to consider an investment in this range, they are likely to require too large a share of the company’s equity.

If friends and family or even professional angels are willing to stretch to meet the company’s funding need, the company is likely to have to invest money and resources in associated document creation. At VCapital, we have done this before and offer a more streamlined, cost-effective way to secure funding for the right companies.

Because VCapital is targeted to serious, discerning investors who meet our minimum investment requirements, entrepreneurs/founders gain access to smart, knowledgeable investors, many with strong operating backgrounds as entrepreneurs or professional investors. They can provide significant strategic advice and support and may even help as brand ambassadors through their own networks and with the added boost of social media.

Finally, because we feature only a select few, highly promising companies on our site, inclusion means you have passed a very stringent examination. You’ll be in great company.

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