Accredited Investor Requirements
Discussions center on US SEC accredited investor rules limiting startup and private investments to high-net-worth individuals, including definitions, regulatory rationale for investor protection, and debates on fairness and accessibility.
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It's actually a thing. https://en.wikipedia.org/wiki/Accredited_investor
They've limited participation to so-called accredited investors (with minimum income or assets as defined by the SEC). There are non-trivial regulatory requirements that come with accepting money from unaccredited investors, so many (most?) startups do the same.
They are probably referring to not being an accredited investor.https://en.wikipedia.org/wiki/Accredited_investor
Basically it's currently illegal for someone who's not a millionaire (an "accredited investor") to invest in startups.
No this is not arbitrary, accredited investors have a specific set of requirements they need to meet in the US: https://www.investopedia.com/terms/a/accreditedinvestor.asp
How can someone invest in you without being accredited investor?
don't you have to be an accredited investor [1]. I certainly don't qualify to be one, i suspect lot of people don't either.1. https://en.wikipedia.org/wiki/Accredited_investor#United_Sta...
Iād assume SEC regulations on being an accredited investor: https://www.investopedia.com/terms/a/accreditedinvestor.asp
The accredited investor requirement is to protect you. If you are bypassing it then I'd use extra caution. Invest in companies closer to you so it's easier to complete due diligence.
I'm going to guess that that will require accredited investor status (https://en.wikipedia.org/wiki/Accredited_investor).