{"id":22956,"date":"2023-04-16T09:00:00","date_gmt":"2023-04-16T07:00:00","guid":{"rendered":"https:\/\/blog.urbanitae.com\/2023\/04\/16\/13-what-is-a-sophisticated-investor\/"},"modified":"2024-01-17T23:28:09","modified_gmt":"2024-01-17T22:28:09","slug":"13-what-is-a-sophisticated-investor","status":"publish","type":"post","link":"https:\/\/blog.urbanitae.com\/en\/2023\/04\/16\/13-what-is-a-sophisticated-investor\/","title":{"rendered":"What is a sophisticated investor?"},"content":{"rendered":"\t\t
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I don’t want to disappoint you. No matter how much experience you have in investing, you are not likely to be a sophisticated investor. It is not a matter of what each individual thinks, but of what the law says. Wait, I’ll tell you about it.<\/p>\n\n\n\n

First of all: we are talking about real estate crowdfunding investment<\/strong>. As you may know -and if you don’t, that’s what we are here for-, it is an activity supervised by the National Securities Market Commission (CNMV). But not only that, crowdfunding is regulated at the European level. In fact, in 2020, Regulation (EU) 2020\/1503<\/a> was passed, creating a common framework for crowdfunding platforms (PFP)<\/strong> in the European Union (EU).<\/p>\n\n\n\n

Aunque el reglamento europeo es de 2020, no se empezar\u00eda a aplicar en Espa\u00f1a hasta noviembre de 2021. In Spain, PFP were governed by Law 5\/2015; the adaptation of the law to the new European framework came with Spanish Law 18\/2022, which included a new legal regime for these platforms, in force since November last year. Urbanitae was not long in coming and, in fact, was the first in its sector to obtain authorization to operate in the EU.<\/a> <\/p>\n\n\n\n

I tell you all this because one of the novelties of the new European framework has to do with the types of investors. Previously, the law distinguished two categories:<\/strong> accredited investor and non-accredited investor<\/strong><\/a>.<\/strong> The reason for having two types is protective: to differentiate between professional investors and retail investors – like you and me – so that the latter would find it more difficult to take risks they might regret.<\/p>\n\n\n\n

For example, non-accredited investors could not invest in projects of more than \u20ac2,000,000. And they had an investment limit on all projects: 3,000 euros per project and 10,000 euros over a 12-month period. Accredited ones had no limits. However, in order to be considered as such, in addition to applying, one of these conditions had to be met: <\/p>\n\n\n\n