Blog & Journal


Investor Solution: Shield Against Scams, Fuel Business Growth

Rohankresocials December 12, 2023

In this growing world, every business is scared of getting unauthorized partners. They are trying their best to combat the increasing fraudulent activities by hackers. Imposters have the worst influence on the successful journeys of businesses, they are trying their best to pretend things and invent new friendly methods to scam the growing businesses. It was recorded in 2022 that the United States lost almost $1.59 billion, and is still increasing with time. To eliminate this disease from society, businesses need a Know Your Investor solution for all those businesses that want to achieve authentic shareholders. 

This blog will talk about the benefits of implementing the Know Your Investor service (KYI)within legal organizations to achieve legitimate business partners.

What Role Does an Investor Play In the Success of a Company?

An investor is an individual who invests payments to different companies and in return, they demand quality work and shares which give them money that meets their requirements. Getting an authentic investor is everything a legal company can have to secure itself from huge financial losses. For instance, if a company unintentionally gets involved with a shell company or an illegal entity. Authorities will never consider it as an excuse that they accidentally fall prey to an illegal company. They have to face hefty penalties and worse reputational damages.

Classification of Investors 

Investors can be of different types including:

  • Angel Shareholders

These shareholders support the small-scaled startups and the ones who are new to the business fields. These investors put money into systems that carry a high risk of criminal attacks, fraud, and company downfall. Mostly, these creditors use excessive amounts of money to control the possible dangers that come in the way of businesses.

  • Venture Investors

These investors mostly invest their money in companies that are already developed. They do not support the ones who are new in the business field or are just starting their company without any experience. These investors usually have their own companies and they collaborate their organization with the one whom they want to invest with. That’s how they can enjoy their levels of success too and experience more productive things in their lives by interacting with diverse people, other than their employees.

  • Institutional Shareholder

These creditors mostly invest the money that people transfer in the fund-collecting agencies. Therefore, it’s not their money, they are spending the collected money on buying different assets that are particularly based on assisting local and international clients. 

  • Personal Shareholder

These shareholders can be anyone who spends money on their own business. They can invest payments according to their requirements and have no restrictions. They are not experts but they take huge amounts of payments by investing in motor vehicles.

What is Investor Accreditation Verification?

In the Know Your Investor (KYI) process, a third party evaluates the investor for a business, which will guarantee the legitimate institutes that they are connecting with authorized shareholders. This verification ensures legal sectors never get involved with any shell company.

Benefits of Qualified Investor Verification 

When a business is connecting itself with a new shareholder, then it must discuss that counterparty with other registered institutes. There is a diverse list of benefits of getting a qualified investor verification, including:

  • International Opportunities

To verify potential investors, it is necessary to have digital validation services because it will help the business connect with the clients globally. Moreover, it will increase their growth chances as they will be paid more if they click with an international investor. Know Your Investor solution provides businesses with regulatory compliance at both local and international levels. For instance, the income that comes from two different companies when one is connected to a local business and the other with an international sector are not the same. Because the client from abroad will pay more than a local consumer. Therefore, it helps legitimate businesses link with shareholders from all over the world. That’s how businesses can advance themselves to new levels by incorporating online evaluations of investors.

  • Support Small-Scale Businesses

By utilizing Know Your Investor within systems, legal businesses can also make trusted relationships with businesses of all sectors. When companies have online assistance by which they can verify their partners in investor onboarding procedures, they feel more secure and protective while connecting to a small-scale business.

  • Less Exposure to Fraudulent Activities

To verify investor online by any third registered party can not only provide authentic businesses with diverse chances of success but also offers them different strategies by which they can conveniently combat unprecedented fraudulent attacks.

Investor Verification Service

The legal sector must validate their business partners online. As they play an important role in the growth of a sector. The mandatory things for verifying a shareholder include:

  • Verify Investor Background

Before beginning the process of the Know Your Investor solution, it is an essential step to validate the background of a client. To verify this, businesses should know about the name of the investor, date of incorporation, services, Moreover, their personal and company residential area. These important details will help legal businesses in their decision-making process. It will guide them in deciding whether the shareholder is a good fit for the company or not.

  • Know about Financial Stability

Businesses must know about the financial condition of their counterparty, as it will protect them from future threats. For instance, if a company gets connected with an institute that is not stable financially, then they have to pay for the loss in the future. To secure businesses from these huge finance-based losses, it is necessary to have a Know Your Investor solution within legal organization systems.

  • Learning About Their Previous Connections

To get a stable business, all the authentic sectors must learn about their client’s previous connections and criminal records. As it will help them save their business from the worst reputational damages and hefty penalties that may include incarcerations. 


Know Your Investor (KYI) assists businesses in maintaining their regulatory compliance. These solutions make the bureaucratic sectors satisfied with the business’s actions. Therefore, when authorities are happy with any institute, it will help them promote their good brand image. Businesses can quickly secure themselves from the worst reputational damages and hefty penalties. Verifying the investors online will provide businesses with diverse ways by which they can get a successful sale and purchase journey. Moreover, by Knowing your investor services. These solutions are a quick fix for all those institutes that are afraid of connecting with a new investor.

Leave a Comment

Login to your account

Can't remember your Password ?

Register for this site!