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SEC Expands “Accredited Investor” Definition

Scott Edward Walker

This past Wednesday, the Securities and Exchange Commission (SEC) adopted amendments expanding the definition of “accredited investor” to include individuals who hold certain professional certifications/licenses or have certain “credentials,” as determined by the SEC. Current Definition of “Accredited Investor”.

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Beware the “dirty cap table.”

Berkonomics

The problem in taking such money rests in the legality of taking money from non-accredited investors, people who do not meet the SEC standard for making non-public company investments. And even more recently, “crowd sourcing” has been enabled by the Internet – seeking many investors at a small amount per investment.

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Could you have created a “dirty cap table?”

Berkonomics

What would the SEC say about your investors? Email readers, continue here…] The problem with taking friends and family money rests in the legality of taking money from non-accredited investors, people who do not meet the SEC standard for making non-public company investments. An important exemption.

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Does your company have a “dirty cap table?”

Berkonomics

The problem in taking such money rests in the legality of taking money from non-accredited investors, people who do not meet the SEC standard for making non-public company investments. And now that “crowd sourcing” has been enabled using the Internet – seeking many investors at a small amount per investment. The legality issues.

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Using warrants to pump up your VC valuation

www.mattbartus.com

Employees, Advisors & Consultants (12). 25 comments since March 31, 2010 Five questions that startups should ask a pro. 24 comments since April 19, 2010 How to pump up your VC valuation 23 comments since February 9, 2010 Startup Attorneys, Law and Legal Issues: I am founding a startup. November 2010 (3). October 2010 (2). August 2010 (6).

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What is a “Dirty Cap Table?”   

Berkonomics

The legal issues The problem in taking such money from “FFF” investors often is taking money from non-accredited investors, people who do not meet the SEC standard for making non-public company investments. It is worth checking with an attorney to see if such investors are truly exempt. Does issuing a PPM insulate the company?