EarlyIQ Partners with Vertalo to Power New Investor Accreditation Subscription Service

Nov 1, 2018 · 3 min read

Vertalo, a digital asset compliance solutions company, and EarlyIQ, an accredited investor verification service, are collaborating to provide a new “persistent investor qualification service. This joint Vertalo-EarlyIQ service will enable individual investors and funds to re-qualify their accredited investor status every 90 days (subject to document updates), and then store the results of the qualification on-chain within Vertalo’s Registry service.

Using this new service, investors will be able to ‘commit, qualify, and fund’ issuances that support Vertalo and EarlyIQ, thereby reducing the lag time suffered by investors and issuers when hosting an online crowdfund raise. In addition to the reduction in wait times, this service will result in reduced costs for broker-dealers & issuers, as well as an improved buying experience for investors.

Vertalo CEO Dave Hendricks believes the new service is important for primary issuance of many kinds of offerings.

“We are very excited to provide investors with on-chain ownership of their investor qualification results. Up until now, investors often had to wait for days, and submit escrow payments, before knowing whether they would be able to obtain an allocation for an ICO, STO, or other crowd fundraise methods. By implementing this new ‘BYO-KYC’ and investor qualification service, both investors and issuers will be able to execute deals faster, and with higher confidence. EarlyIQ is a fantastic partner and we expect this service to be very popular with the investor and issuer community.”

With these two innovators in the digital asset space working together, we will see:

  • EarlyIQ launch a subscription service for Accredited Investor Verification / KYC / AML
  • For a low annual fee, investors can subscribe to EarlyIQ and keep their accredited investor status always up-to-date, and share their status as part of up to four verifications per year
  • Vertalo will provide the technology to maintain investor’s qualifications, and up-to-date statuses for broker / dealers and issuers, on chain

The partnership benefits investors, who can more easily maintain and present their qualification status, and enables them to commit, qualify, and fund a purchase instantaneously. At the same time, there are significant cost reductions to realize for broker / dealers and issuers.

Before Vertalo and EarlyIQ came together to provide this service, the investor qualification process was much more difficult and time-intensive. Investors were required to commit to a deal, then issuers had to spend money and time qualifying the investor. During this extended process, many investors lose interest, drop out of the offering, and leave the issuer holding the (expensive) bag.

By minimizing the amount of time it takes for an investor to qualify and fund an investment, it reduces the chances that an investor will get cold feet and drop out. The ability for a potential investor to instantaneously quality for an offering also reduces cycle times for deal completion, thus creating opportunities for additional offers to be completed throughout the year.

If you are interested in learning more about Vertalo’s services, our partnership with EarlyIQ, or how faster investor qualifications benefits all parties involved in the deal-making / fundraise process, please visit us at Vertalo.com, send an email, or schedule a product demo.

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