Do I have to be an Accredited Investor to be an Angel? To invest in new businesses affiliated with the Angel Law Forum?
Most companies seeking to raise capital at the very early stages will require that their investors be accredited investors. In some circumstances, however, businesses may be able to raise funds from a limited number of individual investors who do not qualify as “accredited investors.” Some early-stage companies may also take advantage of certain federal and state regulations that can allow them to sell securities to an unlimited number of investors who meet standards other than the federal “accredited investor” qualifications. One such regulation is Section 25012(n) of the California Corporations Code, which allows a California issuer to sell its securities, without obtaining a permit, to an unlimited number of investors who meet certain qualifications. For individual investors, the requirements are a minimum net worth of $500,000, exclusive of home and automobiles, or annual income of at least $100,000. A coordinating regulation adopted by the SEC lets these securities offerings proce
