This page explains what we mean by asking you to complete a Sophisticated Investor Declaration.
Investing Women Angels is a member-led angel investment community.
From time to time, we may share information about private investment opportunities with our members.
These opportunities are typically in early-stage or growth businesses and may involve a high level of risk.
Because of this, UK financial promotion rules require us to check that people receiving certain investment-related information fall within an appropriate investor category.
One of those categories is known as a “self-certified sophisticated investor.”
Being a sophisticated investor does not mean you know everything about investing. It means that, based on your recent experience, role or involvement in business or investing, you may be able to confirm that you have enough relevant experience to receive certain types of investment-related information.
For the purposes of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, you may be able to declare yourself a self-certified sophisticated investor if you meet at least one of the conditions below.
Please note: You only need to meet one of these conditions.
You may meet Condition A if you have worked in a professional capacity in the private equity sector, or in the provision of finance for small and medium-sized enterprises, within the last two years.
This might include relevant work in investment, finance, corporate finance, venture capital, private equity, lending, funding advisory or another professional role where you have been involved in financing small or medium-sized businesses.
In the declaration form, you will be asked to confirm whether this applies to you. If it does, you may also be asked to provide the name of the business or organisation where you gained this experience.
You may meet Condition B if you are currently, or have been within the last two years, a director of a company with an annual turnover of at least £1 million.
This condition is about your experience in running or overseeing a business of a certain scale. It does not mean you personally need to have earned £1 million, or that the company needs to have raised investment.
In the declaration form, you will be asked to confirm whether this applies to you. If it does, you may also be asked to provide the company name and Companies House number, or an international equivalent where relevant.
You may meet Condition C if you have made two or more investments in an unlisted company in the last two years.
An unlisted company is a company whose shares are not listed on a public stock exchange. Many early-stage and private businesses fall into this category.
This condition may apply if you have previously made angel investments or invested directly into private companies.
In the declaration form, you will be asked to confirm whether this applies to you. If it does, you may also be asked how many investments in unlisted companies you have made in the last two years.
You may meet Condition D if you have been a member of a network or syndicate of business angels for more than six months and remain a member.
This might include membership of an angel investment syndicate, network or community where members are introduced to early-stage investment opportunities.
In the declaration form, you will be asked to confirm whether this applies to you. If it does, you may also be asked to provide the name of the network or syndicate.
By completing the Sophisticated Investor Declaration, you are confirming that you meet at least one of the relevant conditions and that you wish to be treated as a self-certified sophisticated investor for the purposes of receiving certain investment-related information.
This means you may receive financial promotions where the contents have not been approved by a person authorised by the Financial Conduct Authority.
It also means that the content of those financial promotions may not comply with FCA rules.
The Financial Promotion Order exemptions allow certain investment-related communications to be made without approval by an authorised person, but those communications are not subject to the same detailed FCA financial promotion rules that would otherwise apply.
By signing the declaration, you may lose significant rights and protections.
In particular, you should understand that you may not have access to:
This means that, if something goes wrong with an investment, you may not be able to complain to the Financial Ombudsman Service or claim compensation from the Financial Services Compensation Scheme.
Angel investing can be rewarding, but it is high-risk.
You should only invest money you can afford to lose. Investments in early-stage and private companies are usually illiquid, which means they can be difficult or impossible to sell. Returns are not guaranteed, and you could lose all of the money you invest.
Some businesses fail. Others may take many years to return capital, if they return capital at all.
You should also understand that any information shared about an investment opportunity may be based on forecasts, assumptions or projections. These may not be achieved.
Being a sophisticated investor does not remove these risks. It simply confirms that you meet one of the recognised experience-based criteria for receiving certain investment-related information.
No. Investing Women Angels does not provide investment, legal, tax or financial advice.
We may facilitate introductions, events, education and access to information about potential investment opportunities, but each member is responsible for making their own independent investment decisions and undertaking individual research and due diligence.
You should consider seeking advice from someone who specialises in investment advice, like an Independent Financial Advisor (IFA), before making any investment decision.
The declaration is a self-declaration, and we only require you to complete a short online form. However, you should answer honestly and carefully.
You will be asked to confirm whether at least one of the following applies to you:
Note: With Investing Women Angels you self certify to join the syndicate and can only invest after 6 months.
You should not complete the declaration unless the information you provide is true and accurate.
If you do not meet the Sophisticated Investor criteria, you may still be able to engage with Investing Woman Angels in other ways.
For example, you may be able to join one of our educational sessions or training opportunities designed for women interested in angel investing who are not yet ready to self-certify as sophisticated investors.
We often describe this audience as investor curious: women who want to understand how angel investing works, what the risks are, and whether it could be right for them in the future.
You may also meet the criteria for a different investor category, such as High Net Worth Individual, in which case we may ask you to complete a different declaration form.
If you are in any doubt, please contact us.
Please do not complete a Sophisticated Investor Declaration unless you genuinely meet at least one of the conditions listed above.
Before signing the form, please make sure you understand that:
Questions?
If you are unsure whether this declaration is right for you, please contact us to discuss.
