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Well he explicitly mentions equity crowd funding which allows people to bypass those rules. Also, from personal experience as an angel investor, there isn't rea
by imjk 12y ago
Well he explicitly mentions equity crowd funding which allows people to bypass those rules. Also, from personal experience as an angel investor, there isn't really a great authority out there enforcing accredited investor requirements. All the times I've invested in private companies, I simply had to sign a one-page document self-proclaiming myself as an accredited investor.
- itsallthesame 12y agoIf you were to sign that document but not have the $1 million in assets to qualify as an accredited investor wouldn't you be committing some sort of securities fraud?
- jonnathanson 12y agoThe way the system works, the burden/penalty is on the company, not you, to verify your accreditation status. If you lie on your self-accreditation form, that's the company's problem for selling private securities to unaccredited individuals (and a huge problem it may well be). This is actually one of the big pain points that platforms like AngelList, with their syndicate deals and their self-reporting requirements, solve for startups. AL standardizes the self-accreditation process, and puts up stringent documentation requirements, that make it very hard for a person to lie his way through. Companies get peace of mind that AL investors have the net worth they say they do. FundersClub also does a pretty good job of this, in my experience. As for the more fast and loose, "crowdfundy" sites? I have no personal experience there, so no idea. I don't see the upside in investing through them.
- seanflyon 12y agoThere is no investing through crowd-funding sites. It is all either donations, or pre-purchasing a product.