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How to Evaluate and Approve Investor Applications

Overview​

As investments flow into your deal, you'll need to review and approve investor applications. The WhiteLabel Community Deals Platform gives issuers control over who can invest in their offerings, allowing you to evaluate potential investors based on various criteria and ensure they meet your requirements. This guide will walk you through the process of reviewing investor information, making informed approval decisions, and managing your investor base effectively.

Prerequisites​

Before evaluating investor applications, you should:

  • Have an active issuer account on the platform
  • Have a live deal that is accepting investments
  • Understand your investor criteria and requirements
  • Be familiar with applicable securities regulations regarding investor qualifications
  • Have established internal policies for investor acceptance

Step-by-Step Instructions​

Step 1: Access the Investor Applications Dashboard​

  1. Log in to your issuer account
  2. Navigate to your active deal
  3. Click on the "Investor Applications" tab
  4. Alternatively, from your main dashboard, select "Investor Management" → "Pending Applications"

Step 2: Review the Applications Overview​

The Applications Overview provides a summary of your investor pipeline:

  1. Application Statistics

    • Total number of applications
    • Applications by status (Pending, Approved, Rejected, Additional Info Requested)
    • Average processing time
    • Conversion rate (approved to funded)

  2. Application Queue

    • Sorted by submission date (newest/oldest)
    • Filterable by investment amount, investor type, and location
    • Color-coded by priority or age

  3. Automated Flags

    • High-value applications
    • Applications with compliance concerns
    • Applications from repeat investors
    • Applications requiring special attention

Step 3: Set Up Review Preferences​

Before diving into individual applications, configure your review settings:

  1. Click on "Review Settings" in the Applications dashboard

  2. Configure:

    • Auto-Approval Rules: Set criteria for automatic approvals (e.g., investments below a certain threshold, returning investors)
    • Required Approvers: Specify team members who must review applications above certain thresholds
    • Review Checklist: Customize the evaluation criteria for your deal
    • Response Templates: Create standard messages for approvals, rejections, and information requests

  3. Click "Save Settings"

Step 4: Review Individual Applications​

Select an application from the queue to review:

  1. Investor Profile

    • Personal or entity information
    • Investment history on the platform
    • KYC/AML verification status
    • Accreditation status and verification
    • Location and jurisdiction

  2. Investment Details

    • Proposed investment amount
    • Investment tier or class
    • Payment method
    • Special requests or notes

  3. Completed Documents

    • Subscription agreement
    • Accreditation evidence
    • Entity documentation (if applicable)
    • Tax forms
    • Electronic signatures

  4. Risk Assessment

    • Automated compliance checks
    • Jurisdiction restrictions
    • Investment limits compliance
    • Potential red flags

Step 5: Verify Investor Accreditation (If Applicable)​

For offerings limited to accredited investors:

  1. Review the investor's accreditation evidence:

    • Income verification (tax returns, W-2s, etc.)
    • Net worth verification (bank statements, investment accounts, etc.)
    • Professional certifications (for certain qualification types)
    • Entity documentation (for qualified entities)

  2. Check verification status:

    • Platform-verified (already verified by the platform)
    • Third-party verified (verified by an external service)
    • Self-certified (requires your review)

  3. For self-certified investors, use the verification checklist to ensure all requirements are met

Step 6: Review Subscription Documents​

Ensure all required documentation is properly completed:

  1. Open the subscription agreement and other investment documents

  2. Verify:

    • All required fields are completed
    • Signature blocks are properly signed
    • Investment amount matches the application
    • No modifications to standard terms (unless pre-approved)
    • Entity documentation is consistent (for entity investors)

  3. Use the document verification tool to highlight any missing elements

Step 7: Check Compliance with Investment Limits​

Ensure the investment complies with applicable limits:

  1. Review:

    • Minimum investment requirement
    • Maximum investment limit (if applicable)
    • Jurisdiction-specific investment limits
    • Regulation-specific limits (e.g., Reg CF annual limits)

  2. For non-accredited investors (if allowed in your offering):

    • Verify income-based investment limits
    • Check for previous investments in similar offerings
    • Ensure educational materials were acknowledged

Step 8: Make an Approval Decision​

Based on your review, select one of the following actions:

  1. Approve Application

    • Confirms the investor meets all requirements
    • Allows the investor to proceed with funding
    • Automatically generates approval notification

  2. Request Additional Information

    • Specifies exactly what information is needed
    • Puts application on hold pending response
    • Sets a deadline for information submission

  3. Reject Application

    • Requires selection of rejection reason
    • Generates appropriate notification
    • Records decision for compliance purposes

  4. Escalate for Review

    • Flags application for senior team review
    • Adds notes explaining concerns
    • Assigns to specific team member

Step 9: Provide Feedback and Communication​

For each decision, communicate appropriately with the investor:

  1. For approvals:

    • Select or customize the approval message
    • Include next steps for funding the investment
    • Provide timeline expectations
    • Add personalized welcome note (optional)

  2. For information requests:

    • Clearly specify what information is needed
    • Explain why the information is required
    • Provide instructions for submitting the information
    • Set clear deadline for response

  3. For rejections:

    • Select appropriate rejection reason
    • Provide legally-compliant explanation
    • Include any applicable regulatory references
    • Offer alternative options if appropriate

Step 10: Track Post-Approval Activities​

After approving an application, monitor subsequent activities:

  1. Track funding status:

    • Pending funding
    • Partially funded
    • Fully funded
    • Funding failed

  2. Monitor document completion:

    • Additional documents required post-approval
    • Tax forms
    • Banking information

  3. Set up investor relationship:

    • Add to investor communications list
    • Tag for appropriate investor segments
    • Note any special handling requirements

Best Practices​

  • Establish Clear Criteria: Define clear acceptance criteria before your offering goes live
  • Consistent Evaluation: Apply the same standards to all applicants to avoid discrimination claims
  • Timely Reviews: Process applications promptly to maintain investor interest and momentum
  • Document Decisions: Record the rationale for approvals, rejections, and information requests
  • Compliance First: Always prioritize regulatory compliance over fundraising goals
  • Investor Experience: Consider the investor experience in all communications
  • Team Coordination: For larger offerings, establish a clear review workflow among team members
  • Regular Audits: Periodically review your approval process for consistency and compliance
  • Legal Consultation: Consult legal counsel when establishing rejection criteria and communications
  • Data Security: Handle investor information with appropriate security and privacy measures

Troubleshooting​

Common Issues​

  1. Incomplete Documentation

    • Solution: Use the "Request Specific Documents" feature to clearly identify missing items
    • Solution: Provide document templates or examples where appropriate

  2. Accreditation Verification Challenges

    • Solution: Suggest alternative verification methods to the investor
    • Solution: Consult with the platform's compliance team for guidance on unusual situations

  3. High Volume of Applications

    • Solution: Implement auto-approval rules for straightforward applications
    • Solution: Prioritize applications by investment amount or submission date
    • Solution: Consider adding team members to the review process

  4. Jurisdiction Restrictions

    • Solution: Use the jurisdiction checker tool to verify eligibility
    • Solution: Consult legal counsel for complex cross-border situations

  5. Investor Communication Issues

    • Solution: Verify contact information is correct
    • Solution: Use alternative communication channels if primary method fails
    • Solution: Check spam filters for platform emails

Getting Help​

If you encounter any issues during the investor application review process:

  1. Navigate to the /support Support center by clicking on the "Support" link in the main navigation
  2. Select the appropriate category for your issue:
    • "Investor Applications" for general review questions
    • "Compliance" for questions about investor eligibility
    • "Documents" for questions about investor documentation
  3. Provide specific details about your issue, including relevant investor IDs
  4. Submit your support request
  5. Support staff will respond through the platform's notification system