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Accredited investors aren't asking for this change. The participation of private investors (of any net worth) in regular equities was a non-factor in current fi
by SamAtt 16y ago
Accredited investors aren't asking for this change. The participation of private investors (of any net worth) in regular equities was a non-factor in current financial troubles, or indeed any financial troubles of recent decades.
Are you sure about that? Pre-IPO investment is a competition. There are hot startups and investors compete to invest in them. Beyond that everyone knows the early investors are the ones who make the most.
If I'm someone with a net worth of several million dollars and I'm viciously competitive I'd probably like these new rules because it forces people to come to me rather than to their Aunt Sally who has $100,000 stuffed away in a savings account somewhere.
- gojomo 16y agoThat's a reasonable game-theoretic point -- and another reason why I'd like to know their names. I think the famous investors now rallying against these new rules can meet the new limits themselves, but know the industry as a whole will be hurt if they lose their $1-2.5mil net worth angel peers. So if there's some subset of angels who like this for non-positive-sum personal-advantage, let's out them. (There may be none; this could so thin the field of hopeful startups they lose far more in dealflow than they gain in lessened competition. But let's see.)
- hga 16y agoSee SamAtt's comment on other reasons "famous investors" are against this; the new net worth limits are arguably the least worst part of this, depending on how viciously the other parts play out.