Tagged: accredited

The Fix Crowdfunding Act is Mostly About Investor Protection

  Last week the House Subcommittee on Capital Markets, part of the powerful House Financial Services Committee, debated several important bills that may boost access to capital for SMEs.  One of the bills, the Fix Crowdfunding Act (HR 4855), has the profound potential to turn… Read More

Knock, Knock … Who’s There? … A TON Of Potential New Real Estate Investors

  To date, most crowdfunded investment opportunities have been limited to wealthy investors who meet the current definition of “accredited investor.” This has left an absolutely HUGE market of potential investor capital, represented by those individuals who currently do not qualify as accredited investors, virtually untapped…. Read More

Verification of International Accredited Investors: What You Need to Do

International investors have always played an important role in providing capital to private placement offers.  The private placement market under Regulation D is enormous. Since Title II made actionable by the SEC in September of 2013, until the end of 2014, over $1.5 trillion in… Read More

Working To Change The Definition of Accredited Investor – A Tale of Two Schweikert Bills

  There has been a lot of chatter and debate lately on how, or even if, the current definition of “accredited investor” should be substantively changed. To date, however, there has only been one affirmative action taken to actually change the definition which I am… Read More

CFIRA Reminds SEC the Time is Now to Update Definition of an Accredited Investor

There is a mandate under Dodd-Frank to review the definition of an “Accredited Investor” on a rolling basis.  As it stands today, Accredited Investors are individuals with incomes over $200,000 per year or $1 million in assets beyond a person’s primary residence. If you are… Read More

Crowdfunding: A Look at 2015 & Beyond!

  With it being new years eve and all, what better time to reflect on all the advancements made this year and to look ahead to all those still to come in 2016 and beyond. If you follow this industry at all, you know that… Read More

This One Graph Explains Why the Definition of an Accredited Investor Must Be Changed Now

There is currently a bill weaving its way through Congress that will go a long way in addressing the regulatory negligence known as the definition of an accredited investor.  The SEC staff has proposed new rules, which the Commission may consider, that have the potential to… Read More

How Much Money Would You Be Worth if You Had Invested in Uber on AngelList?

Uber is a poster child for the collaborative economy and the new breed of unicorns cropping up. The profound success of Uber and their disruptive approach to public transport has flipped the taxi-cab industry upside down – for the better. Sure, they are marching in… Read More

Everything You Need to Know About Accredited Investor Verification

For years, most capital raises conducted by private companies have primarily relied on Regulation D as an exemption from compliance with certain burdensome securities laws.  In particular, most offerings were conducted under what was known as Rule 506 under Regulation D.  Those offerings, which have… Read More

Crowdability Seeks to Make Equity Crowdfunding Safe With Rating & Search Service

This week, investment research firm Crowdability, Inc. unveiled CrowdabilityIQ, a ratings and research service designed specifically for the equity crowdfunding market. With over 100 million retail investing households in the United States, equity crowdfunding—the online offering of private company securities to accredited and non-accredited investors—could become… Read More

Crowdfundraiser Announces Regulation A+ Kickoff Pricing

Crowdfundraiser announced the official release of Regulation A+ crowdfunding kickoff pricing for new companies seeking capital. As of today (June 19th), equity crowdfunding for both accredited and non-accredited investors is now legal. The deals that will begin registration with the SEC today will take a few months… Read More

Will Bill Introduced by Congressman Schweikert Finally Fix the Definition of an Accredited Investor?

The current definition of an accredited investor is something that has been in use for decades.  Basically the rule defines who may invest in certain private placement securities offers. In general you need to be earning over $200,000 a year ($300,000 if married) or alternatively have… Read More

Capital Unbound; Piwowar Suggests Regulators Need Restraining & Crowdfunding Should Look to States

A CATO Institute event on the status of capital markets in the US provided a bright spot to an otherwise bleak and rainy day in New York City. Amidst the libertarian rhetoric and literature, two speakers stood out with certain observations and proposed remedies to… Read More

Colorado Governor John Hickenlooper Signs Equity Crowdfunding Act into Law

On Monday, Governor John Hickenlooper signed the Colorado Crowdfunding Act into law which will allow the state’s residents to be able to stock in local companies without becoming an accredited investor. Earlier this year, a drafted crowdfunding legislation for Colorado was presented that will facilitate crowdfunding by authorizing… Read More

Return on Change Promotes New Platform: DarcMatter is Not Just About Startups

Return on Change, an early entrant into the equity crowdfunding space, has launched a new investment platform: DarcMatter. Return on Change (RoC) was founded by Lee Sang, a reformed investment banker with a degree in financial engineering.  An early advocate of the power and potential… Read More

North Carolina Commerce Secretary John Skvarla: Crowdfunding Could Be the Opportunity Small Businesses Are Waiting For

Last week, North Carolina Commerce Secretary, John Skvarla, revealed that crowdfunding could be the answer to small businesses in the state. According to the Triangle Business Journal, legislators filled a bill last month that would allow non-accredited investors to fund up to $2,000 into private ventures. The… Read More

PENSCO’s Kelly Rodriquez Announces His Top Five Predictions For 2015

Ready to share his thoughts about the new year, CEO of PENSCO, Kelly Rodriquez revealed his top five predictions for 2015. During a recent post on the platform’s blog, Rodriquez stated, “As the CEO of PENSCO, I find myself at a fascinating intersection between IRAs, alternative… Read More

The Number of Accredited Investors (Deck)

The debate surrounding the definition of an Accredited Investor always includes a discussion regarding the number of individuals in the United States who actually qualify.  Recently Rachita Gullapalli, a financial analyst at the Division of Economic & Risk Analysis (DERA) at the SEC, put together… Read More

SEC Commissioner Gallagher: Millionaires Can Fend for Themselves

  Last week I had the opportunity to attend the 2014 Government-Business Forum on Small Business Capital Formation in Washington D.C. where Commissioner Daniel M. Gallagher gave his opening remarks after the first panel. In what I can only refer to as a “mic drop”… Read More

The Definition of “Accredited Investor” Must Be Updated

There has been a lot of uproar about new rules requiring additional steps to verify accredited investor status (i.e. checking tax returns) as a condition to using the new 506(c) rules permitting general solicitation. The real problem here is that the definition of accredited investor is out of… Read More

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