Startup Professionals Musings

FEBRUARY 16, 2015

Most entrepreneurs have found by now one or more of the many popular crowdfunding sites , and have the name and contact information for at least one of the big venture capital firms. By definition, angels are accredited investors, who invest their own money for a percentage of the business.

Angel Investor 120

Angel Investor Accredited Investor Venture Capital Startup 120

Gust

NOVEMBER 29, 2011

But, in the US, only wealthy accredited investors * have been allowed by the Securities and Exchange Commission (SEC) to invest in entrepreneurs and their startup companies (without extensive disclosure of the business plan and risks inherent to such new ventures).

Securities and Exchange Commission 154

Securities and Exchange Commission Accredited Investor Angel Investor Due Diligence 154

Tim Keane

MARCH 8, 2010

" Entrepreneurs looking for investors know about "accredited investor" status and the myriad benefits it provides.    The premise is that having sufficient net worth makes the investor more sophisticated.  "I'm from the government and I'm here to help you." Now comes Sen.

Accredited Investor 60

Accredited Investor Wisconsin Angel Investor Bootstrapping 60

Berkonomics

JUNE 8, 2017

composed of these investors and management. However, most often, these funds are solicited by a well-meaning entrepreneur from investors who are not qualified as accredited investors under the law (currently requiring a proved income of $200,000 a year or $1 million in net worth for an individual investor).

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

K9 Ventures

JULY 12, 2018

This means that a smaller group of typically accredited investors could partake in the value creation of these companies during their years as a privately held company. Or in other words, there is more capital entering private markets that there was ever before.

IPO 119

IPO Marketing Accredited Investor SEC 119

Startup Company Lawyer

MAY 26, 2012

One highly anticipated provision of the JOBS Act, Title III, is entitled ”Capital Raising Online While Deterring Fraud and Unethical Non-Disclosure Act of 2012” or the ”CROWDFUND Act.” Under pressure from Congress, the SEC agreed to review its regulations and their effect on capital formation in spring 2011.

SEC 58

SEC Securities and Exchange Commission Accredited Investor Private Placement 58

Gust

OCTOBER 20, 2011

Individual accredited investors in typical angel deals put personal capital at risk for an equity share of growth-oriented, start-up companies. These angel investors generally invest $25,000 to $100,000 in a round totaling $250,000 to $1,000,000. Channels secure, customers placed trial orders. Another angel round.

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

www.paulgraham.com

APRIL 28, 2010

There are three maindisadvantages: you mix together your business and personal life;they will probably not be as well connected as angels or venturefirms; and they may not be accredited investors, which couldcomplicate your life later. The regulatory burden is much lower if a companys shareholdersare all accredited investors.

Technical Review 76

Technical Review Startup Software Review Vesting 76

Gust

OCTOBER 26, 2011

On the investor side, representations and warranties in the purchase agreement primarily relate to securities law compliance. In most VC and angel financing transactions, there are three pieces to this puzzle: (1) the Company requires investors to make certain representations in the purchase agreement (e.g.,

Finance 79

Finance Term Sheet Accredited Investor Covenant 79

Ben's Blog

MAY 24, 2021

billion multi-stage venture capital firm focused on IT-related investments… I also serve on various investment committees, including for the St. Jude Children’s Cancer Hospital and the Stanford Medical Center, and teach entrepreneurship and venture capital at the Stanford Graduate School of Business.

SEC 36

SEC IPO Accredited Investor Technical Review 36

Professor VC

MARCH 12, 2015

I started using Authy for two-factor authentication to provide greater security in my digital currency trading. As a refresher, syndicates were introduced by Angellist a couple of years ago as a way for companies to raise funds in small increments from a large number of investors (SEC limit of 99 accredited investors).

Syndicate 28

Syndicate Syndication Silicon Valley Common Stock 28

ReadWriteStart

JANUARY 31, 2012

Right now, the only entities that can invest in startups are those that are accredited investors such as venture capital firms or venture banks. Much of the regulations that the SEC implements are designed to protect the investor. The impacts of the Democratizing Access to Capital Act could be tremendous.

Securities and Exchange Commission 122

Securities and Exchange Commission Accredited Investor SEC Massachusetts 122

Professor VC

AUGUST 14, 2012

Since the provisions of the JOBS Act relating to angel investments by non-accredited investors haven't been finalized yet, these platforms are currently only available to accredited investors, who already have the ability to make angel investments. However, there are many pieces of the FC model that are intriguing.

Accredited Investor 42

Accredited Investor SEC Cap Table Angel Groups 42