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> In fact, what we need is to eliminate all accredited investor requirements for small investments of up to $25k. Why does someone have to be a millionaire to i
by apinstein 17y ago
> In fact, what we need is to eliminate all accredited investor requirements for small investments of up to $25k. Why does someone have to be a millionaire to invest in a friend's startup?
IIRC, you don't have to be an accredited investor to invest in a friend's startup. You only need accredited investors if you're soliciting investment publicly. It's part of "Regulation D" of the SEC code: http://en.wikipedia.org/wiki/Regulation_D http://en.wikipedia.org/wiki/Regulation_D
This bill looks like it might have negative side effects on the startup economy, but "friends & family" isn't one of them.
- bilbo0s 17y agoI thought that discrepancy was interesting too. You would think someone like Fred would have known that.
- TimothyFitz 17y agoWhile it's not illegal to take "friends & family" investment, it adds a lot of legal headache and it's something VCs really don't want to deal with. Startup Lawyer puts it better than I can: http://thestartuplawyer.com/convertible-notes/life-is-too-short-to-deal-with-non-accredited-investors http://thestartuplawyer.com/convertible-notes/life-is-too-sh...