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You don't need to be an accredited investor to invest in startups. I did a lot of research back in 2007 when I started BlueStone Investments, a high-frequency a
by seanMeverett 16y ago
You don't need to be an accredited investor to invest in startups. I did a lot of research back in 2007 when I started BlueStone Investments, a high-frequency ago trading firm. Basically the SEC requirements don't even apply unless you have a group of more than 10-15 investors (i.e., hedge fund).
Thus, if you want to be independent or start a small angel fund, you don't have to worry about being accredited, you just have to worry about sharpe ratios of the investments you're pursuing (whether securities or businesses).
I'm in the process of starting a few companies and need a bit more cash than I can liquidate at the moment, so we are looking for an angel investor around the $100k level for a year to fund leasing short codes (SMS) and marketing. We're not changing any user behavior but extending the functionality of a communication medium used by every mobile phone in the world.
You can find my email in my profile if you're interested in chatting.
- gojomo 16y agoYou don't need to be an accredited investor to invest in startups. True, but the most-promising/best-advised startups often avoid the risk and expense of taking money from non-Accredited Investors (or at least those who aren't close friends and family). So while it's technically possible, your ability to angel-invest is severely encumbered by the Accredited Investor rules.
- damoncali 16y agoYou're mistaken. The SEC requirements most certainly do apply to individuals. A company has different obligations if it is taking money from non-accredited investors.