Friends and family are allowed to invest in a company without being an accredited investor. The rule about accredited investors involves soliciting investment

Friends and family are allowed to invest in a company without being an accredited investor. The rule about accredited investors involves soliciting investment from the general public. Rule 504 allows a company to raise upwards of 1 million dollars over a 12 month period from non-accredited investors so long as that money is raised from pre-existing contacts, that is no general solicitation is made. http://www.sec.gov/answers/rule504.htm http://www.sec.gov/answers/rule504.htm