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Maybe for post seed rounds or seed funding greater than $5M, otherwise I don’t understand the need (or rule) for limiting seed funding to accredited investors.
by will_brown 9y ago
Maybe for post seed rounds or seed funding greater than $5M, otherwise I don’t understand the need (or rule) for limiting seed funding to accredited investors.
I’m surprised YC has that as a requirement to participate in demo day, seems kind of archaic for a disrupter.
- fudged71 9y agoThis is an SEC rule for public solicitation... demo days can only be for accredited investors, plus it's easier that founders know everyone has been vetted. I know of accelerators that don't screen the demo day participants, and it's risky.
- will_brown 9y agoBut there are exceptions to the general solicitation prohibitions. Maybe they find those exceptions to onerous and burdensome, but in my mind that just means there is a giant opportunity - 90% of the US market is being excluded.
- wslh 9y agoIf you don't live in US and you are not an US citizen, do you need to be an accredited investors?
- icedchai 9y agoDon't a lot of people "self certify" for accreditation? In my experience, most of this "screening" isn't very deep.
- fudged71 9y agoYes I think a signature of self certification is all that's generally required to keep the accelerator out of trouble, but again there are accelerators that don't even know this limitation exists with the SEC. Blame Shark Tank and general lack of knowledge of investment regulations.