Investnext Investor Accreditation

  • CLIENT: InvestNext

  • DURATION: Q2 2024 - Q4 2024

  • ROLE: Lead Product Designer

 
 
 
 

1. OVERVIEW

The problem

InvestNext is launching a standalone accreditation process independent of a commitment to attract new Limited Partners (LPs) to the platform, moving us closer to a marketplace model. This initiative is designed to simplify access for potential investors, thereby broadening our user base and enhancing our platform's functionality.

The Solution

Develop a standalone accreditation process that operates independently of investment commitments. This initiative will allow LPs to become accredited without immediate investment obligations, thereby attracting more LPs to the platform and facilitating a faster, more streamlined entry into the marketplace.

 

2. RESEARCH

THE PROBLEM: DISJOINTED Accreditation EXPERIENCE

Feedback from potential and current LPs indicates that the existing accreditation process, tied directly to specific investments, can be restrictive and cumbersome, leading to hesitations or delays in initiating investments. To help frame my research, I created a product research plan, which includes the goals and objectives, assumptions, methodologies, participants, questions, and timeline.

Goal

Create a more flexible and user-friendly accreditation process that aligns with the needs of modern investors, thereby enhancing user engagement and increasing the number of active LPs on the platform.

 
 

MARKETPLACE RESEARCH

While only a small fraction of the current user base utilizes the existing accreditation features, there is significant potential to attract a larger segment of the market by offering a more accessible, independent accreditation process.

Competitive Research

Investigation into competitor offerings shows that many platforms require tied commitments for accreditation, presenting an opportunity for InvestNext to differentiate itself by offering a standalone option.
To evaluate the competition in the capital raising tool market, we examined the offerings of the following competitors: Agora, AppFolio, Juniper Square, and Cashflow Portal. Each of these platforms provides solutions tailored to capital raising, albeit with different features, strengths, and target markets. We compared top product features and services, which include: Capital Raise Management, Investor Portal Access, Analytics, CRM Integration Compatibility, and Investor Vetting Tools.

 
 

Looking at the leading competitors, many of them offer the basic services, such as an investor portal and management tools, but many competitors fall short with advanced investor compliance tools and analytics features.

 

3. DEFINE

Empathy Maps

Used to gain deeper insights into the needs and frustrations of potential LPs regarding accreditation, focusing on the desire for greater autonomy and fewer barriers to entry.

 
 
 
 

After empathy mapping and interviewing potential customers, one personas became a clear focus to the team and the target user group. The Persona was created based on the design research analysis, conversations with existing customers, and design partners at SaaS startups. With the user persona, I could empathize more with the end-users’ needs, motivations, and pain points with a financial insights tool.

 

SUCCESS METRICS

Success will be measured by:

  • Increase in the number of accredited LPs on the platform.

  • Reduction in the time required to complete the accreditation process.

  • Improved satisfaction ratings from LPs regarding the accreditation experience.

 
 

Define: User Flow

We created a user flow diagram to outline the streamlined process for investors going through the accreditation process.This flow aims to minimize unnecessary fail states and provide a clear path for investors to complete accreditation.

 
 
 

4. WIREFRAMING

DESIGNING + PROTOTYPING

Using Figma, we developed wireframes and prototypes for a standalone accreditation dashboard that allows users to manage their accreditation status independently of their investment activities. Key features include:

  • An intuitive user interface for submitting and managing accreditation documents.

  • Real-time updates on accreditation status.

  • Direct integration with customer profiles and investment opportunities once accredited.

WIREFRAMING: USER JOURNEY

Illustrate the user journey from initial interest in accreditation through to completion, ensuring the process is streamlined and user-friendly.

Redefined Accreditation flow:

  1. Educational onboarding for investors not sure of their accreditation status

  2. Add section for uploading each relevant document type.

  3. Educational side panels and tips to guide users on correct document types.

 
 

Capital raise experience: Medium Fidelity

1. Accreditation Enablement Page: Provides a clear method for enabling investor accreditation for individual investment opportunities.

2. Accreditation Workflow : Features a clean, efficient layout that provides all necessary information and tools for users to complete their accreditation with minimal hassle.

3. Investor Settings Page: Settings page to allow investors to complete accreditation outside of an individual investment and within the investor portal.

4. Investor Review Page: Allows sponsors to review the accreditation status of individual investors.

 
 
 

5. FINAL DESIGNS

 
 

Accreditation Requests

For the accreditation project, I developed a standalone accreditation request flow that enables investors to get accredited independently of the commitment process. This innovative approach allows investors to conveniently view and manage their accreditation status directly within their individual investor portals. By separating accreditation from the commitment flow, we've made it possible for investors to handle their accreditation at their own pace and without the immediate pressure of an investment decision. This enhancement not only streamlines the accreditation process but also empowers investors by giving them full control over their investing accounts, thus improving user experience and satisfaction on the platform.

 
 

Enabling Accreditation

For individual capital raises, we've integrated a feature that allows sponsors to collect accreditation from investors prior to their investment in projects, ensuring full compliance with SEC regulations. This preemptive approach not only streamlines the investment process but also safeguards both sponsors and investors by verifying investor eligibility early in the process. By enabling accreditation within the capital raise settings, sponsors can manage investor credentials more effectively, maintaining regulatory compliance without sacrificing the efficiency of the investment cycle. This enhancement is designed to provide peace of mind to both parties, ensuring all investments proceed smoothly and within the bounds of legal requirements.

 
 
 
 
 

6. TEST

SUCcess Metrics

Expected Impact:

  • KPI 1: 70% of Accreditation applications submitted in under 5 minutes.

  • KPI 2: 85% of Accreditation applications approved on the first try.

  • KPI 3: 15% increase in MRR related to Accreditation services.

Results: The implementation of InvestNext's new accreditation process showed mixed results: 78% of applications were submitted within 5 minutes, surpassing our 70% goal, but only 52% were approved on the first try, missing the 85% target due to an underestimation of unprepared investors. Additionally, we achieved a 10% increase in MRR, falling short of the 15% target. These insights highlight the need for better educational resources, improved pre-screening, and more realistic KPI setting, guiding us to refine our approach to better meet investor needs and enhance overall platform efficiency.

7. DELIVERY

During the development of the standalone accreditation feature, I worked closely with engineering, customer support, sales, and leadership teams to refine the platform. The delivery process began with internal and customer beta testing to refine functionality and gather feedback. Key actions included advocating for pre-release adjustments, setting a code freeze date, coordinating beta partner discussions, and implementing feedback-based revisions. We scheduled a launch date and planned a post-launch review after one quarter to evaluate performance against key performance indicators (KPIs). This ensured a robust, user-friendly, and compliant launch of the accreditation feature.

8. TAKAWAYS

Alignment to Product Roadmap: This project underlines the strategic shift towards making InvestNext a more inclusive and accessible platform for a wider array of investors, enhancing our competitive edge in the market.

Focus on User Experience: A strong emphasis on user experience and satisfaction will drive the adoption and success of the new accreditation process, setting a standard for future enhancements. This project overview details the strategic approach, key features, expected outcomes, and operational steps for the rollout of the new InvestNext Accreditation feature, aligning with broader business objectives and user engagement goals.