Cherrystone Angel Group receives certification

SOMERVILLE, Mass. – The Cherrystone Angel Group is one of the first angel groups in the nation to receive a certification aimed at lessening the burden placed on entrepreneurs to prove accredited status of investors.
Cherrystone, founded in 2004, is an investment group with more than 60 investors. The group announced Wednesday that it was one of the first five angel groups in the nation to receive the certification “Established Angel Group,” by the national Angel Capital Association. The certification, created last fall to satisfy certain regulations created by the U.S. Securities and Exchange Commission, indicates to entrepreneurs raising money that “reasonable steps” have been taken to verify the group’s member investors are accredited.
“This certification will allow us to invest in 506(c) deals (solicited offerings) without compromising our members’ personal financial information and more importantly, allow entrepreneurs to spend more time building their venture sand less time confirming accredited investors’ status,” said Jennifer Schwall, Cherrystone’s executive director, in a statement.
Cherrystone had to submit “significant documentation” to become certified, according to a press release. The Rhode Island investment group is a member of the ACA, which is a trade association representing about 220 angel groups nationally and more than 12,000 individual accredited investors.
“[The] ACA is proud to count Cherrystone Angel Group as one of the first angel groups to become certified,” said ACA executive director Marianna Hudson. “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.”
Schwall says they were surprised and pleased to be named one of the first to receive certification.
“When we saw we were leaders it was kind of exciting,” Schwall said.

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