Angel Loop’s Chartable purpose is to achieve the public benefit of Innovation and to encourage greater public participation by either encouraging  Inventors to create new inventions and to increase the available funding by increasing the number of Investors to enable the idea to be successful commercialisation.  As part of that is has a mandate to ensure that all Australians are provided with the necessary pathway to participate in this vital public benefit.

A Qualified Startup Investor (QSI) is an investor assessed by Angel Loop as being “sophisticated” for the purpose of investing in startup businesses. Angel Loop has assessed the participant as having the necessary financial literacy required under section 708 of the Corporations Act to be classed as being  “sophisticated” enough to participate in this highly risky investment class. This public services provides certainty to Business Introductory Services as well as  startup businesses (under the 20/12/2 rule) that the Investor understands how to manage risks when undertaking an investment.

Effective 1st April 2025 Business Introductory Services become regulated by ASIC and will require an AFSL (unless exempt).  An Angel Meeting where all the participants permitted to Invest are “exempt” investors (as they hold QSI) then the organiser of that meeting is also exempt. 

The QSI process supports two routes to be classed as Sophisticated. 

1. By Wealth  (A letter from An AFSL licensee is satisfied on reasonable grounds as described in s708(8) and s761G(7) or
2. An AFSL licensee is satisfied on reasonable grounds as described in Section 708(10) and s761GA of the Corporations Act 2001 (Cth) that the person to whom the offer is made has previous experience (or professional training) in investing in securities that allows them to assess: the merits of the offer 

• the value of the securities 
• the risks involved in accepting the offer 
• their own information needs 
• the adequacy of the information given by the person making the offe