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Can someone please explain why it's preferable to raise money from an angel than any other citizen, besides connections/networking advantages? What's the legal
by zackattack 16y ago
Can someone please explain why it's preferable to raise money from an angel than any other citizen, besides connections/networking advantages? What's the legal reason behind having "accredited investor" status - what can an accredited investor invest into that a civilian cannot?
- anamax 16y agoAngel is a legally meaningless term. Some investors provide benefits beyond cash in certain cases while others don't. > What's the legal reason behind having "accredited investor" status - what can an accredited investor invest into that a civilian cannot? Those are two separate questions. The reason is to "protect" investors. Companies can accept investment from accredited investors in certain situations but not from unaccredited ones. These situations involve registration, disclosure, and other things.