So, you’ve done your research and considered important relevant factors such as your risk profile, time horizon, and investment objectives, and decided you want to invest with Propel(x) to add venture capital to your investment portfolio.
Read on for our step-by-step guide to creating an accredited investor account on the Propel(x) platform.
What is an Accredited Investor?
The first step in the process is to check that you meet the requirements of an accredited investor. You can read about these in our blog post Qualified Purchaser vs. Accredited Investor – What’s the difference and why does it matter?
To qualify as an accredited investor, an individual must meet one of the following financial criteria:
- Net worth over $1 million, excluding primary residence (individually or with spouse or partner).
- Income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expect the same for the current year.
Investment professionals and investment entities can qualify as accredited investors based on relevant criteria as described here.
The Onboarding Process for Setting up an Accredited Investor Account
Certain offerings posted on the Propel(x) platform are offered by Hubble Investments, which is a fully owned affiliate of Propel(x). Hubble Investments is a registered broker dealer and member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC). As such, Hubble Investments and Propel(x) are required to make appropriate inquiries to ascertain the accredited investor status of applicants on the Propel(x) platform.
The onboarding process for setting up an accredited investor account is outlined in the following step-by-step guide:
Getting Started: From the Propel(x) home page, click on one of the highlighted “Start Now” or “Start Investing” buttons
Enter your details: Enter your personal details to create your investor account.
Remember, taking this step does not commit you to anything, nor does it mean you must invest in any deals – it is simply to set up an account and confirm your accredited investor status to allow you to access the investment opportunities on the Propel(x) platform.
You can use your LinkedIn or Facebook profiles to set up your account, or you can use email if you prefer.
Make sure your password meets the minimum security requirements.
Question 1: Indicate your primary method of investment, to provide context on the nature of your current investment strategy.
Question 2: Select one or more options that provide the basis for your qualification as an accredited investor.
Question 3: State your date of birth, for identification purposes.
Question 4: Select your investment objectives for Propel(x) offerings, bearing in mind the nature of the opportunities on the Propel(x) platform.
Question 5: Select your estimated investment time horizon, bearing in mind the nature of the opportunities on the Propel(x) platform.
Question 6: Select all investments you currently hold, to provide an indication of your current level of investment experience and familiarity with various investment instruments.
Question 7: Identify your individual income to support the assessment of your accredited investor status.
Question 8: Identify your household income to support the assessment of your accredited investor status.
Question 9: Select your net worth (excluding your primary residence) to support the assessment of your accredited investor status.
Calculate your net worth by adding up all your assets and subtracting all your liabilities, excluding the value of your primary residence and any mortgage against it (unless the loan is for more than the fair market value of the primary residence). This SEC Accredited Investor bulletin provides further guidance on how to calculate net worth.
Question 10: This answer provides an indication of your current level of experience with startup investments. Note this answer does not have an impact on the assessment of your accredited investor status.
Question 11: This acknowledgement confirms your understanding of the nature of, and risks associated with, startup investments.
Question 12: This section and your answer provide additional context and warnings associated with startup investments, to help Propel(x) understand your investment interests.
Question 13: This acknowledgement further confirms you understand the nature of, and risks associated with, startup investments.
Question 14: This acknowledgement further confirms you understand the nature of, and risks associated with, startup investments.
Question 15: This answer helps us learn more about our customers and improve our service. We would really appreciate your feedback!
Question 16: It is important that we have a phone number in case direct contact is needed.
Email confirmation: It is important to make sure the email address you have provided is valid, so a verification step is necessary.
Email verification: Once your email address is verified, you’re good to go! Just click on the highlighted “Continue” button.
First time log in: Now that your account is set up, you can log in to start accessing the Propel(x) opportunities.
Once you’ve entered your email address and password as a new user, you will receive a welcome email which includes a link to the “Form CRS”, or Customer Relationship Summary. This form provides important information about Hubble Investments LLC and its registration with the Securities and Exchange Commission (SEC) as a broker-dealer.
After completing all the above, you’re done with setting up your account. The next step is to wait for the Propel(x) team to review your account application and assess your status as an accredited investor.
Once that is confirmed, the Propel(x) team will send you a confirmation email welcoming you to the Propel(x) community.
Notice to Potential Investors
When considering investments on the Propel(x) platform, it is important for potential investors to be aware of the following notice:
This site is operated by Propel(x) Inc. (“Propel(x)”), which is not a registered broker dealer. Propel(x) does not give investment advice, endorsement, analysis or recommendations with respect to any securities.
Certain offerings posted on the platform and so designated are offered by Hubble Investments, Member FINRA / SIPC and a fully-owned affiliate of Propel(x), located at 1 Franklin Parkway, Bldg # 930/1 – Fintech Suite, San Mateo CA 94403. Hubble Investments does not make investment recommendations and no communication, through this website or in any other medium should be construed as a recommendation for any security offered on or off this investment platform.
This website is intended solely for qualified investors. Private investments are highly illiquid and risky and are not suitable for all investors. Investments in early-stage private companies should only be part of your overall investment portfolio. Furthermore, the allocation to this asset sub-class may be best fulfilled through a balanced portfolio of different start-ups. Investments in startups are highly illiquid and those investors who cannot hold an investment for the long term (at least 5-7 years) should not invest.
This article contains links to third-party websites. These links are provided solely as a convenience to you and do not imply an affiliation, sponsorship, endorsement, approval, investigation, verification, or monitoring by us of the contents on such third-party websites. We are not responsible for the content of any website owned by a third party and do not guarantee the accuracy, timeliness, completeness, suitability, reliability, or usefulness of any information.