A fun innovation in financial engineering I saw recently and thought was worth sharing: I am an extremely tiny angel investor, which means I periodically send small checks to startups in return for an equity investment. This has historically been very toilsome for all parties.
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Replying to @MartinAmps
Crowdfunding platforms deal with a bit of adverse selection problem; this brings similar operational efficiency to deals which someone in my position should certainly hope would be attractive to savvy professional investors. Notably, this method relies on accredited investors.
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Replying to @patio11
Thanks for explaining! Why doesn’t the AngelList method require you to be accredited, aren’t you effectively an LP at that point? I guess the devil is in the details if you’re essentially a second order angel
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Replying to @MartinAmps
This, AFAIK, does require investors in the SVP to be accredited.
9:01 AM - 19 Feb 2020
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