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That's because its less about that and more about allowing a certain income class to have exclusive access to certain kinds of investments. A VC firm that offe
by KoftaBob 7y ago
That's because its less about that and more about allowing a certain income class to have exclusive access to certain kinds of investments.
A VC firm that offers nothing more than money (larger % of them than you'd think) doesn't want to compete with tons of syndicates consisting of average retail investors.
The "accredited investor" gatekeeping allows them to provide very little value and say "doesn't matter, you need us because we're the very few that are allowed to invest in your company".
- superflit 7y agoWorking for the finance industry. This is the right answer Gatekeeping
- TheRealSteel 7y agoPrecisely. If the government cared about protecting people from poor investments, they would ban gambling.
- icedchai 7y agoIf you work in tech, especially FAANG, you are likely surrounded by "accredited investors." There are a lot more of them you think.
- SpicyLemonZest 7y agoIf retail investor syndicates can successfully compete with VCs, why aren't squads of senior FAANG engineers doing it today? They're comfortably over the accredited investor threshold.
- icedchai 7y agoProbably because they make enough extra money investing in public markets with less hassle and much more liquidity. Why even bother with private investments? 90% of them are going to zero.