Trending Sources

Now, Non-Accredited Investors Can Place Bets Like the Ultra Wealthy

Fresh Inc.: The Staff Blog

Andrew Medal, founder of Agent Beta, describes how the crowdfunding ecosystem is changing, and what Indiegogo is doing about it

Startup Fundraising: Friends, Family, And Accredited Investors

Early Growth Financial Services

When it comes to startups’ earliest funding sources, beyond founders’ personal liquidity (or debt capacity) friends and family are usually the first places founders turn to for help getting their startups going. But there are significant risks to tapping those close to you for funds. securities laws.

Will the most successful crowdfunding portals be restricted to accredited investors?


Almost by definition, however, they will be taking it in cautious steps. 4) Accredited Investor funding portals, which may or may not register under the JOBS Act, but will restrict themselves to the exempt, upper part of the market. This is an interesting question, and one to which no one really has an answer yet.

Legal Checklist for Startups

Scott Edward Walker

I’ve been a corporate lawyer for 17+ years, and there are certain fundamental legal mistakes that I’ve seen startups repeatedly make. 

Fundraising 101: Checklist for Entrepreneurs

Scott Edward Walker

Hustle and build relationships in order to get warm introductions to those investors (see post here ). 3. 

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Beyond Kickstarter: What to Do (and Avoid) Before Crowdfunding Your Company

Fresh Inc.: The Staff Blog

Equity crowdfunding allows entrepreneurs to raise to up a million dollars in capital from non-accredited investors. Is it right for you

Update to Accredited Investor Definition

The Startup Lawyer

The Dodd-Frank Wall Street Reform and Consumer Protection Act probably won’t fix or prevent anything, but it was successful at modifying a portion of the definition of an accredited investor. ADJUSTING THE ACCREDITED INVESTOR STANDARD. (a) IN GENERAL.-The Tags: Startup Issues accredited investors

How To Launch a Startup and Avoid Ending-up in Jail

Scott Edward Walker

Introduction I love working with startups – and trying to protect founders and watch their backs.  Potential Criminal Violations Employment Laws. 

Are there any crowd funding options for tech start-ups not tied to just supporting projects?


So in the meantime, while there are a very few sites (such as  CircleUp  for Accredited Investors, and  Bolstr  for non-Accrediteds) that have begun to gingerly start operations under existing laws, I’m afraid it’s likely to be several months before crowdfunding truly gets going. The  U.S.

Accredited Investors Are Not Necessarily Professional Investors

Mark Birch

Working with angel investors is another story completely.  Until Congress deems otherwise (aka JOBS Act ), a person has to be an accredited investor in order to invest in private companies.  Being an accredited investor does not make someone a knowledgeable, professional, and rational investor

Dodd-Frank Act Affects Private Placements by Raising the Bar for Individual Accredited Investors

Recent Buzzes - VC Experts, Inc.

With the enactment of the Dodd-Frank Act on July 21, 2010, the "net worth" standard for an "accredited investor" under Regulation D has been adjusted, effective immediately, to specifically exclude. For individuals to qualify as "accredited investors," they must satisfy either income or net worth standards. By Lewis J.

Where would I go to invest in startups or emerging companies?


” and the second is “Are you an  Accredited Investor  by that country’s standards?” This will be changing next year, however, because of a new law called the  JOBS Act of 2012 , which establishes a new, limited type of  Crowdfunding  for small companies and non-Accredited investors. Once the  U.S.

What is an accredited investor?

Startup Company Lawyer

For some of the exemptions, such as rules 505 and 506 of Regulation D, a company may sell its securities to what are known as “accredited investors&# defined in rule 501 of Regulation D.  Thus, many homeowners are accredited investors due to the value of their houses. 

Expand Accredited Investor Class, Not Shrink It.

Venture Chronicles

Fred Wilson points out, rightly so, that the banking reform does a lot more than just reform banking rules, it goes to the very heart of who can invest in non-banking activities and how. 1) Changing the definition of a “qualified investor&# in angel and venture deals. You have to be a qualified investor.

Tech Wildcatters Pitch Day May 2016

The Startup Lawyer

Tech Wildcatters, the original Dallas accelerator, is hosting their first pitch day of 2016 on May 26th at the House of Blues in Dallas. Here’s

New Accredited Investor Net Worth Test to Impact Private Investment

Recent Buzzes - VC Experts, Inc.

By Alon Y. Kapen, Esq. of Farrell Fritz, P.C. On January 25, 2011, the SEC issued proposed rules to implement the exclusion. Background. million to 7.6


New Accredited Investor Net Worth Test to Impact Private Investment

Recent Buzzes - VC Experts, Inc.

In the Dodd-Frank Act passed last year, Congress required that an individual's primary residence be excluded from the $1million net worth test for accredited investor status. On January 25, 2011, the SEC issued proposed rules to implement the exclusion.


Where would I go to invest in startups or emerging companies?


” and the second is “Are you an Accredited Investor by that country’s standards?” The first question you need to ask is “What country are you in?” Invested Interests

Dodd-Frank Bill Signed by Obama: Aspects of Individual Accredited Investor Tests Altered

VC Deal Lawyer

The income level test has not changed as a result of the Act, however, Congress has directed the SEC to, no sooner than 4 years from now and then every 4 years thereafter, study and consider amending all aspects of the individual accredited investor qualifiers.  Tags: Angel Investors Legislation Raising Capital

SEC Adopts New Equity-based Crowdfunding Rules


The difference is up until the change, only so-called accredited investors, high net worth individuals, could […] The post SEC Adopts New Equity-based Crowdfunding Rules appeared first on SiliconHills. The U.S. Austin

Will Crowdfunding Replace Angel And VC Investors?

Startup Professionals Musings

In fact, perhaps the most important model, equity crowdfunding for non-accredited investors, is still not legal in the U.S., In the U.S.,

Modern Day Patron of The Arts on Upstart

Feld Thoughts

In this new model of crowd-funding, accredited investors back entrepreneurs and have the option of signing on as mentors.

The Blurring Of The Public And Private Markets

A VC : Venture Capital and Technology

The ability to raise large sums of capital from public market investors has been available to privately held companies for a number of years now. With the recent SEC adoption of Title III of the Jobs Act, non-accredited investors can start investing in private companies. That was not true a decade ago. Well guess what?

Can a private company take investment money from anyone?


Unfortunately, a private company in the US may  not  take investment money from “anyone” The  only  people who are legally eligible to purchase an equity interest in a private company without a great deal of special paperwork are, as you noted, Accredited Investors. This is an  absolute  rule. Invested Interests

Crowd-Funding Success Usually Brings New Challenges


Many entrepreneurs seems to be convinced that the “crowd” of regular people using the Internet will somehow solve their startup funding needs, when they sense a lack of interest from accredited investors. Pebble watch crowd-funding via Wikipedia. Invested Interests crowd funding entrepreneur funding startup

House Passes Crowdfunding Bill: FAQ’s for Entrepreneurs

Scott Edward Walker

Last week, the U.S. What is Crowdfunding? May Startups Raise Funds via Crowdfunding? Are There Any Downsides to Crowdfunding for Startups? What’s Next?

10 Keys To Giving The Right Entrepreneur Your Money

Startup Professionals Musings

It’s an opportunity for that “big bang” return of 10X to 100 times your initial investment, like early investors in Google, Microsoft, and Apple.

What’s a typical day like for a full-time angel investor?


There is no such thing as a full-time angel investor  (or if there is, I’ve never met one.). Since all angels are  Accredited Investors  (which means they’re millionaires if they’re not otherwise employed) it wouldn’t make any sense for them to do this on a full-time basis.

AngelList Accreditation Report

Seth Levine's VC Adventure

They totally nailed it by releasing the AngelList Accreditation Report. The post AngelList Accreditation Report appeared first on Feld Thoughts.

Is it legal to solicit investors for a startup since the JOBS Act has passed?


So, at the moment it looks like your choice will therefore be: MARKET to anyone but SELL to Accredited Investors, or SELL to anyone but MARKET only through funding portals. For the moment, however, we’re still in the traditional world of “MARKET to nobody, SELL only to Accredited Investors.” Yes and No.

If I Launched a Startup

The Startup Lawyer

Raising Capital. (1) Length of NDA: 0 pages. (2) Fees Paid to Pitch my Startup: $0. (3) Investors: Accredited Investors. (4) Structure of First Capital Raise up to $1MM: Convertible Notes.

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Where To Find The Most Angels To Fund Your Startup

Startup Professionals Musings

Angel investors are people too. Investors expect you to understand their motivation, respect their time, and show your integrity in all actions.

5 Surprising Truths From A Crowdfunding Advocate

Startup Professionals Musings

Non-accredited investors can contribute a maximum of only 10 percent of their income, so they can’t lose it all on a single startup.

How Closely Do You Follow Networking Etiquette Rules?

Startup Professionals Musings

I often recommend business networking as the most effective way for a startup founder to find investors, advisors, and even key executive candidates.

Crowdfunding: KickStarter, Indiegogo, AngelList, Gust: How to choose?


Gust and AngelList are  equity-based  platforms, used by  Accredited Investors   to facilitate the  investment  of money for an  ownership  interest in a  company. As such, depending on what you are trying to do (fund a project or get permanent investors into your company), you would select one group or the other.

Start Here if You are Looking for Angel Investors

Startup Professionals Musings

Angel investors are people too. Investors expect you to understand their motivation, respect their time, and show your integrity in all actions.

Funding Circle Reviews: What You Need To Know

Blogtrepreneur | Entrepreneur Blog

While Lending Club is open to most middle-class investors, Funding Circle only allows accredited investors ( a/k/a rich people) to invest.

Venture Deals: Chapter 13: Legal Things Every Entrepreneur Should Know

Ask The VC

In this final chapter of the book, we will briefly cover  Intellectual Property,  Employment Issues,  State of Incorporation,  Accredited Investors,  Filing an 83(b) Election, and  Section 409A Valuations. There are a few legal issues that we’ve seen consistently become hurdles for entrepreneurs and their lawyers.

After Raising $6.7M For Startups And Winning SEC Approval, AngelList Opens Up Investment Platform To More Companies

And today, AngelList is opening the platform up to all startups with top-tier investors. Startups. Mobile. Gadgets. Europe. Video. Enterprise.

SEC 48

Raising Startup Capital Through Convertible Debt Financing

Business Plan Blog

FFF investing is not a short-term play and mostly investors do not get a return on their investment immediately. Raising Seed Capital.