Accredited Investors:

**Jason G** · 10-14-2007 06:18 PM

This question is directed towards Daniel and Joshua S. I’m not going into much detail, but I’m looking for an answer in regards to an accredited investor.

Let’s say I’ve invested into two offline companies and both have done substantially well. I’m considering taking on a third venture, but I would like to start a small Angel Investing group to fund the next project. Will I infringe on any SEC regulations, if my investor are not “ Accredited Investors”?

Thanks in advance Guys!

Jay.

**radreality** · 10-14-2007 07:23 PM

hold on....you're this deep into possible SEC infringement and you are consulting with people online rather than consulting with your attorney?

wow.

______________________________
Robert Falk
Business Developer / Investor
Self Help & Success Forum

**Jason G** · 10-14-2007 07:34 PM

Originally Posted by radreality

hold on....you're this deep into possible SEC infringement and you are consulting with people online rather than consulting with your attorney?

wow.

You are a prime example of why I hate this web-site. Do you feel like you've accomplish something by making a smart ass comment? Does it boost yourself esteem? If you don't have any insightful information to add, why even bother posting?

Anyway, beyond your unintellectual comment, Brad @ ask the VC just answered my question. If any one here would like some insightful information other than this peabrain's comment, check out http://www.askthevc.com/2007/10/how_...eur_fundra.php

The question is not in the form I asked, I assume he reiterated to an attorney.

**radreality** · 10-14-2007 07:44 PM

it has nothing to do with a smart-ass comment.

It has everything to do with consulting your own team experts that will back you just in case something happens.

______________________________
Robert Falk
Business Developer / Investor
Self Help & Success Forum

**Cole Taylor** · 10-15-2007 11:59 AM

Move to CA and do a 25102(n) it's easy because you can advertise and cold call. The downside is you only have 210 days. Both the 505 and 506 Reg. D allow up to 35 non accredited investors.

Remember, it's only when someone complains that you get put under the microscope.

Also, worst that will happen if you keep everything above board and dont use finders is a cease and desist...big deal.

**Jason G** · 10-15-2007 08:25 PM

Why don’t we look at this from another angle.

Let’s say myself and one other individual would like to create a web-site where Electrical Engineers still attending college primarily located in Florida, can pitch their business ideas for twenty five thousand in capital.

In return for capital, we would receive equity in the company. If we were successful and continued down this path, without brining in external capital would we infringe on SEC regulations?

**Cole Taylor** · 10-15-2007 08:38 PM

You are charging a fee for a listing. It just so happens your fee is paid in stock. As long as you don’t make any recommendations as to the validity of the offering you are not involved in the soliciting of funds.
Of course you want to check with an attorney, but you can structure a deal to accomplish the above.