Matt Levine on accredited investors: https://www.bloomberg.com/view/articles/2018-09-24/earning-the-right-to-get-swindled … My rough feeling on this:
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Most companies who dip their toes in e.g. "Raise $1k from 10k regular folks" will be adverse selection problems; $10 million was not on offering from the folks who putatively know what they're doing. (The con case to this is "Ahh but 10k committed evangelists in consumer.")
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I know a lot of folks who are in the orbit of Silicon Valley who are not, technically speaking, accredited investors, but who would like to be accredited investors, partly for cachet, partly for social reasons, and partly because there are genuine opportunities available.
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Here's the general way this plays out, assuming all parties are "in the know": "What's your salary?" "Healthy but nowhere near the bar." "What's your net worth?" "Barely a positive number." "Really. You own virtually nothing." "I have virtually nothing in checking."
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"What company in Silicon Valley is worth what it has in checking?" "... Oh." And after that it's a quick exercise in accountancy. (Run it by your own lawyer or accountant; reporting not endorsing, etc.)
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End of conversation
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