New Angel Requirements

While most of the onerous changes to what defines an accredited investor were amended out of the new Financial Regulation law, some stayed in.  

Here is the change that will affect the most.  Investors must now have to have a total net worth of at least $1M excluding your personal residence.  Both the Angel Capital Association and the SEC were happy with this change. Given the melt down in real estate over the last few years, it is probably a good idea to eliminate real estate as a part of liquid net worth!

This is important.  If a non-accredited investor invests in a start up, the disclosure/registration requirements are much stiffer. This increases costs.  So, it is in start up companies best interest to have only accredited investors in their capital pool.  It also is important to note, if you don’t have the necessary assets as defined by the IRS to invest in companies, you are not precluded from doing so.  There just is a higher bar of reporting requirements.

2 thoughts on “New Angel Requirements

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  2. .hello as you know, Italy is one of the most important country of the world for the fashion and design but it’s also a country full of very skilled engineers, designers, scientists and entrepreneurs there are also THOUSANDS smart people that want start up a new Web or non-Web company but, unfortunately, the italian VC’s and BA’s scenario is poor and "primitive" compared with the USA e.g. last year, in Italy, only 20 (yes, "20") new startups has been funded by VC and only 179 by BA so, in Italy, there is an incredible number of good opportunities for those who want to invest capitals! the best way to contact the people that seek VC and BA funds is to become Sponsor of my VC blog http://www.venturecapitalitalia.it/ that, since, my Venture Capital in Italia blog is one of the few in Italy entirely devoted to VC and BA try yourself, thanks to its perfect domain name, it is always well indexed on Google, Yahoo and Bing so, nearly EVERYBODY that seek "something" about VC and BA on a top SE, always find MY BLOGbest regards gaetano marano.

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