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Linqto purchases shares in large quantities from founders, employees, and investors, so we're able to get a great price on them. We then turn around and sell that equity in smaller quantities to many investors with a reasonable markup.
Yes. As a US-based company, we are bound by regulations set by the Securities Exchange Commission (SEC) which require all investors in private equity to be verified as accredited. The SEC defines an accredited investor as someone who is qualified to invest in complex or sophisticated securities that are not closely regulated. The purpose of the accredited investor designation is to protect retail investors from losses that can result from unregulated investments.
In the United States, an accredited investor is someone who has earned $200,000 in gross income the last two years ($300,000 if filing with a spouse or partner), someone who has a net worth of $1,000,000 aside from their primary residence, or someone who holds a valid FINRA Series 7, 65, or 82 license.
International members will also need to be verified as an accredited investor via the requirements set by their governing bodies. Our team can work with you to determine your eligibility based on your country.
No! Linqto sources deals and marks them up so that there are no further follow on fees for the investor whatsoever. While fees have historically been very high in private markets, we, at Linqto, are proud to offer a zero-fee investment management platform. Linqto has no continuing management fees/expenses, no brokerage fees, no carried interest, nothing.
At Linqto we want to make private investing accessible to all. Historically, investing in a private company required you to invest at least $100,000, but at Linqto you can invest with as little as $2,500*. This allows you to diversify your holdings across a number of companies- an important aspect of achieving consistent returns in the private markets. *Applies to first investment only.
If you haven't already, start by signing up for an account and verifying your email address.
Once you have an account, there's a three step process you'll need to complete in order to make an investment on Linqto.
Step 1: Identity Verification
This is a standard practice as part of our Know Your Customer and Anti Money Laundering (KYC/AML) compliance. You'll be asked to scan your Drivers License or Passport and take a self-photo to verify your identity.
Step 2: Basic Information
You'll need to complete the rest of your profile such as your citizenship and SSN/Tax ID number. This information is used for things such as tax reporting and is not shared with anyone.
Step 3: Verify Accreditation Status
Verify if you are an accredited investor in order to have access to all investment opportunities. Most countries have regulations that require you to have sufficient net worth, income, or are considered a sophisticated investor in order to invest in private companies.
In the US, an accredited investor includes anyone who:
-Has earned income that has exceeded $200,000 (or $300,000 together with a spouse or spousal equivalent) in each of the prior two years, and reasonably expects the same for the current year, OR
-Has a net worth over $1 million, either alone or together with a spouse or spousal equivalent (excluding the value of the person’s primary residence), OR
-Holds in good standing a Series 7, 65 or 82 license.
Not in the US? Click here to contact our team to learn your countries requirements.
Once you have verified that you have met the accreditation standards applicable to your country of residence, you can self-verify that you are an accredited investor and have access to all opportunities on Linqto. If you are not an accredited investor, you can still have access to certain investments on our platform.
Linqto uses Plaid, one of the most widely-used ID verification providers, to verify your identity. Within your Investor Profile, you can click "Begin ID Verification" to enter Plaid's verification process, where you'll be asked to input a few basic pieces of information like your name and phone number. You may be asked to show a government-issued ID, like a driver's license or passport.
Your data is processed and store with encryption, and we will never sell your personal information.
If you haven't already, start by signing up for an account and verifying your email address. Once you have an account, there's a four step process you'll need to complete in order to make an investment on Linqto.
Step 1: Identity Verification
This is a standard practice as part of our Know Your Customer and Anti Money Laundering (KYC/AML) compliance. You'll be asked to scan your Drivers License or Passport and take a self-photo to verify your identity.
Step 2: Basic Information
You'll need to complete the rest of your profile such as adding your primary residence address, phone number, and SSN/Tax ID. This information is used for tax reporting and to communicate with you --your private information is never shared with anyone.
Step 3: Verify Accreditation Status
To verify that you are an accredited investor in order to have access to all investment opportunities, you can access your Investor Profile to be guided through the accreditation verification process.
The US requirements for accreditation can be found here, while information on international requirements can be found in our blog post here.
Step 4: Fund Your Cash Account
You can fund your cash account via ACH, Wire Transfer or Uphold within your Wallet. Both the ACH and Uphold routes support instant availability of your funds (limits apply).
After these steps are completed, you'll be able to place orders for the assets of your choice.
When you make an investment on Linqto, you are purchasing the equivalent number of shares in a Special Purpose Vehicle managed by Linqto but owned by the investors and are protected against creditors in the event of bankruptcy.
We do this for several reasons. First, when private equity is sold, the company has the right to refuse that sale. By selling representation of shares that Linqto owns, we can guarantee an immediate sale to investors without the company having the right to refuse that sale. Secondly, this structure allows only 1 investor, Linqto, on the company's cap table, which is desirable to the company as they want to minimize the number of investors on their cap table for funding and regulatory reasons.
