The SEC is taking a whack at broadening the definition of accredited investor, though proposed rules don't broaden in a way that most natural people working in tech will be that interested in. https://www.sec.gov/news/press-release/2019-265 … They're soliciting comments.
-
-
It's not intrinsically obvious to me that decreasing volatility of returns should be in the government's interest or that the accredited investor standard is narrowly tailored to achieve it, given that retail investors have access to *very* volatile investments in public markets.
Show this thread -
Investors who seek volatility out of a desire to consume gambling are probably doing something which is against their interest, but they're a Robinhood account application away from e.g. making 100:1 bets on options which will expire worthless in less than a week.
Show this thread -
People invest in tech startups for all sorts of reasons, but one of them is the desire to 100X their money by causing something novel to exist in the world. Very, very few angel investments will succeed in doing this.
Show this thread -
But given that there is risk appetite in the world and that retail investors possess some of it, you should probably prefer them deploying their risk appetite against angel investments with a 5+ year time horizon versus weekly options on Tesla. First feels less like casino.
Show this thread
End of conversation
New conversation -
-
-
Why not just straight-up % of income or % of assets (maybe excluding home and retirement)?
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.