One response on “Some Common Sense About Accredited Angel Investing

  1. Jonathan Chizick

    The rules to define an “accredited” investor are arbitrary and outdated. With new low-minimum (as low as $1K) private investment options like FundersClub (for startups) and Realty Mogul (for real estate) there’s no reason to require such high minimum asset requirements. An example I like to use – Snooki qualifies as an accredited investor, yet an MBA making $190k and with assets of $900K does not qualify. Both can certainly afford the risk of low minimum angel investing. I’ll leave it to readers to ascertain who might be more qualified to evaluate the risks of such an investment…which is what the accredited investor criteria is trying to be a proxy for. Bottom line, the existing rules are keeping a lot of available capital from being invested in economic growth.