[Video Tutorial] Due Diligence Officer or Rep Subscribes an Investor to Offering

Contains:

  • Video 1: Starting the Subscriber Flow
  • Video 2: Reviewing Accreditation Verification Subtab
  • Video 3: Reviewing Suitability Subtab
  • Video 4: Reviewing Registration Subtab
  • Video 5: Reviewing Subscriber Information Subtab
  • Video 6: Reviewing Account Distribution Subtab
  • Video 7: Reviewing Amount Subtab
  • Video 8: Reviewing Rep Info Subtab
  • Video 9: Reviewing Agreement Subtab

If you are wondering how to get this step, Click here for Due Diligence Officers and here for Registered Representatives.

Video 1: Starting the Subscriber Flow

In this video we review the functionality of the Subscriptions menu item.

Steps:

  1. First, we ask that you click the Subscriptions menu item underneath the name and tagline of the offering.
  2. Click the blue button Add Subscriber.
  3. Enter your subscriber’s legal first and last name to start the process.
  4. The page will load the subscriber’s name underneath the Add Subscriber button.
  5. On this page, you can keep track of your progress with each investor (Subscription Amount, Status, Signing Status, Last Modified, Agreement).
  6. By clicking the highlighted legal name, you can start the investment subscription process. The next video will cover the “Accreditation” section of the process.

Video 2: Reviewing Accreditation Verification Subtab

In this video we review the ways in which one is able to verify accreditation in our platform.

Steps:

  1. Click on the subscriber’s name under the Subscriptions menu item.
  2. Click the Accreditation subtab on the left-hand side.
  3. You can upload a document to prove accreditation by clicking on the Upload Document button. (Ex. I-9 tax documents or a statement of net worth from a CPA.)
  4. This will complete the step and you will see a green check sign after the Accreditation subtab.
  5. If you would rather complete the attestation form, you should click the Complete Attestation Form button.
  6. The HelloSign e-signature software will load and will give you the opportunity to select your certification under the first red asterisk (first series of three checkboxes).
  7. Input the date by clicking on the white rectangle labeled Date.
  8. As you scroll down you will see another series of checkboxes after the second red asterisk. Here, you can indicate whether accreditation is verified based on net worth (first checkbox), on income (second checkbox), etc.
  9. Input the date by clicking on the white rectangle labeled Date.
  10. If you cannot confirm the prospective investor’s status as an accredited investor you may click the third checkbox in this section.
  11. To sign the document, please click on the rectangular after your name labeled Click to Sign.
  12. By clicking on the rectangle, you will now see that you have four ways to sign the document. You can Draw it in, Type it in, Insert an Image, or Use a Smartphone to execute a signature.
    • Under Draw it in, you can draw your signature and click the Insert button.
    • If you click on Type it in on the left hand side, you can click inside the populated signature and use your keyboard to make any changes. The first and last name associated with your profile will auto populate in this box.
    • By clicking the Upload an Image button on the left, you have the option to upload an image of your signature.
    • Lastly, you can use a smartphone by clicking Use Smartphone and following the instructions outlined in the section.
  13. After your signature is inserted into the document, click the blue “Continue” button in the upper right-hand corner.
  14. This gives you the option to review the document before clicking the blue “I agree” button for the document to be uploaded.
  15. You should receive a green checkbox indicating that you’ve completed this task.

Video 3: Reviewing Suitability Subtab

In this video we review the Suitability subtab when a subscribing an investor flow.

Steps:

  1. Click on the Suitability subtab on the left-hand side.
  2. Under the subtab Suitability out of the four possible options please check the applicable statement about the investor. This indicates their suitability for the private offering
    • I am a corporation, partnership, trust, or other entity with total assets of $5,00,000. Additionally, I was not formed for the purpose of investing in a partnership.
    • I have an individual “net worth” (the fair market value of my total assets, excluding my principal residence, minus my total liabilities), or joint net worth with my spouse, in excess of $1,000,000.
    • I had an individual income in excess of $200,000, or joint annual income with my spouse in excess of $300,000 in the two prior consecutive years and reasonably expect to have the same income level in the current year.
    • I am an entity (including a corporation or partnership) in which all the equity owners individually are accredited investors as described in either option (b) or (c). If this statement is marked, then each entity owners must also complete the Purchaser Questionnaire.
  3. Scroll down to see the header Risk Acknowledgement.
  4. Please click the checkbox before the risk statement, “I represent, warrant and confirm that I understand and have fully considered, for purposes of this investment offering, the risk statements set forth in the Private Placement Memorandum“, to acknowledge the risks associated with the investment offering.
  5. Now, you should see a green checkbox towards the left next to the Suitability subtab. This indicates that you’ve completed this step.

Video 4: Reviewing Registration Subtab

In this video we review the Registration subtab in the subscribing an investor flow.

Steps:

  1. Click on the Registration subtab on the left-hand side.
  2. This is used for know your customer (KYC) purposes for the Sponsor or Managing Broker-Dealer (MBD).
  3. Investors can choose to invest with qualified or non-qualified funds
  4. Select your appropriate registration type based on your investor’s status.
  5. Some of the registration types will require additional supportive documents to be uploaded. (These documents are reviewed by the Managing Broker-Dealer for the purposes of investor compliance and due diligence.)
    • For example, when selecting an LLC registration with qualifying funds, the RR or DDO is required to enter the custodian information.
    • When the subscription agreement is sent out for review and execution, the custodian will need to also sign the document.
  6. If the investors registration type requires additional information, that additional information will be requested in the Subscriber subtab.
  7. Now, you should receive a green check box indicating that you’ve completed this task.

Video 5: Reviewing Subscriber Information Subtab

In this video we review the Subscriber subtab in the subscribing an investor flow.

Steps:

  1. Click on the Subscriber subtab on the left-hand side.
  2. Under Subscriber Information, the representative or executive must indicate if they have power of attorney and have permission to execute the subscription agreement for the subscriber.
  3. The information here will be used to populate the subscription agreement for execution.
    • It is important to note that if you do not have power of attorney then you must submit a copy of the latest version of the Private Placement Memorandum and Subscription Agreement to the investor.
    • If that is the case, upon delivering the information you will be promoted to check off the box indicating the subscriber has seen the most up to date Private Placement Memorandum and Subscription Agreement.
    • Depending on the registration type of the investor, additional fields will be added to this form.
  4. Fill out the Subscriber Information.
  5. Fill out the Source of Funds for Investment section for the subscriber, prior to receiving the green check to move forward.

Video 6: Reviewing Account Distribution Subtab

In this video we review the Distribution subtab in the subscribing an investor flow.

Steps:

  1. Click on the Distribution subtab on the left-hand side.
  2. Here is where investors can choose where they want account distributions to be sent.
  3. If an investor wants distributions to be sent to a brokerage account, you can select Selection A.
    • Under this selection, fields that are required to be filled out are checks payable to, fbo/account title, brokerage mailing address, unit/suite, city, state, postal code, country, and account number.
  4. If an investor wants distributions to be sent to a bank account, you can select Selection B.
    • Under this selection, fields that are required to be filled out are financial institution name, routing number, and account name.
  5. You must also indicate the account type (Checking or Savings).
    • If it is a checking account, you will need to upload a voided check.
  6. Both selections will offer the Optional K-1 Tax Authorization for the investor to opt-in and provide authorization to others to receive a copy of the K-1 tax documents for this investment (ex. Family Members, CPAs, etc.)
    • If the Optional K-1 Tax Authorization box is checked off, the name, email, and relationship to the subscriber will be requested about the party receiving the documents.
  7. Once completed, a green check will be shown after the Distribution tab.

Video 7: Reviewing Amount Subtab

In this video we review the Amount subtab in the subscribing an investor flow.

Steps:

  1. Click on the Amount subtab on the left-hand side.
  2. Enter the investor’s desired investment amount under “Subscription Amount ($)”.
  3. That subscription dollar value will output the number of units that buys into the subscription, and vise versa.
  4. If the representative would like to offer an additional discount to the subscriber, the representative may check off the checkbox to the left of Additional Discount”.
    • If the box is checked then the representative will have to input the discount percentage as a whole number in the underlined section.
    • This discount will be subtracted from their placement fee for that respective subscription.
  5. Once you’ve filled out this information, a green checkbox will be located to the left of your screen after the Amount subtab, indicating that you can move onto the next subtab.

Video 8: Reviewing Rep Info Subtab

In this video we review the Rep Info subtab in the subscribing an investor flow.

Steps:

  1. Click Rep Info subtab on the left-hand side.
  2. All the information from your profile automatically populates here.
  3. If you are interested in adding an additional representative, you can do that here by clicking the Add Additional Representative button.
    • Enter their name, address, phone number, fax number, email, and CRD number.
  4. After you’ve completed this, you can move onto the Agreement subtab.

Video 9: Reviewing Agreement Subtab

In this video we review the Agreement subtab in the subscribing an investor flow.

Steps:

  1. Click the Agreement subtab on the left-hand side.
  2. Click the blue highlighted Review and Sign button. This will load the electronic selling agreement. (This tool is compliant with both the Global and National Commerce Act and Uniform Electronic Transactions Act.)
  3. Once the document loads, click into the rectangular box with the red asterisk labeled Click to Sign.
  4. By clicking on the rectangle, you will now see that you have four ways to sign the document. You can Draw it in, Type it in, Insert an Image, or Use a Smartphone to execute a signature.
    • Under Draw it in, you can draw your signature and click the Insert button.
    • If you click on Type it in on the left hand side, you can click inside the populated signature and use your keyboard to make any changes. The first and last name associated with your profile will auto populate in this box.
    • By clicking the Upload an Image button on the left, you have the option to upload an image of your signature.
    • Lastly, you can use a smartphone by clicking Use Smartphone and following the instructions outlined in the section.
  5. If you have invited an additional representative, you will have to request the document to be sent to them for a signature.
  6. Once every party has signed the document, you may click the blue Submit button.

Thank you for watching! Questions? Email hello@venture.co.