from Hacker News

Getting around Regulation D?

by geekinthecorner on 12/17/10, 7:02 PM with 1 comments

It seems that those of us who aren't yet wealthy are very unfairly kept out of the angel investing market. I might not have $1m in assets, but I have the capability to make two $25k investments per year. It's sort of bullshit that I'm not legally allowed to.

How do us poor folk get around this law which was written to protect a generation who are mostly dead or will be soon?

  • by smoody on 12/18/10, 3:48 AM

    If I remember correctly (and I'll be the first to admit I might not have this right), the accredited investor rule comes into play if a startup doesn't have a full prospectus explaining the risks associated with making an investment along with an in-depth report of the startup's situation. If that's still the case, then if you can make it easy for startups to crank-out semi-customized prospectuses, then you open the doors to investors with less than $1MM. Correct?

    The next trick, of course, is finding companies that want your money and will be willing to do the extra work.