Springfield MA: River Valley Investors (RVI) announces that it has obtained Established Angel Group (EAG) certification from the Angel Capital Association (ACA). The certification assures stakeholders that RVI has taken reasonable steps to verify that group members are accredited investors as defined under Rule 501 of SEC regulations.
ACA’s Executive Director Marianne Hudson stated, “ACA is proud to count River Valley Investors as one of the first angel groups to become a certified Established Angel Group. In most cases, the certification should eliminate the need for member angel investors to provide financial documentation to help entrepreneurs verify they are accredited investors for generally solicited offerings.”
Hudson added, “EAG certification is a big step forward for the ACA, the angel groups that choose certification and the startup ecosystem because it helps put into practice the intention of the JOBS Act by removing the verification concerns around general solicitation or 506c deals.”
EAG certification precludes the need for individual angels repeatedly to provide documentation of wealth or income to issuers or other third parties for deals and add-on investments. EAG certification addresses SEC rules that issuers to take “reasonable steps to verify” accredited investor status in generally solicited offerings and what are known as 506(c) deals, which permit only accredited investors to participate. EAG certification also protects the angel group and its investors if portfolio companies transition to 506(c) status, and reduces paperwork burdens for entrepreneurs finalizing deals.
About the Angel Capital Association:
The Angel Capital Association is the leading professional and trade association focused on fueling the success of accredited angel investors and portfolio companies in high-growth, early-stage ventures. ACA is the voice of the angel industry, providing comprehensive services in support of members working in angel groups, through portals and individually. ACA provides professional development, public policy advocacy and significant benefits and resources to its membership of 220 angel groups and platforms and more than 12,000 individual accredited investors. www.angelcapitalassociation.org.
About River Valley Investors:
River Valley Investors (RVI) is Western Massachusetts's angel investor network, including successful entrepreneurs and executives dedicated to helping each other find, evaluate, and profitably invest in exciting companies with significant growth potential. www.rivervalleyinvestors.com.
Cheryl Isen for the Angel Capital Association, firstname.lastname@example.org, 425-222-0779
Marcie Muehlke for River Valley Investors, email@example.com, 978-302-6564