Strictly Business
A legal blog on private funds, startups, and venture capital.
Strictly Business
A legal blog on private funds, startups, and venture capital.
Tag Accredited Investor
SEC Updates Definition of Accredited Investor
On August 26, 2020, the Securities and Exchange Commission adopted amendments to the definition of “accredited investor.” The amendments, among other things, added to the list of individuals who qualify as accredited investors.
Verifying Accredited Investors in a Rule 506(c) Offering
Companies raising capital using Rule 506(c) have several options as to how to verify whether their investors’ are indeed “accredited investors.” This post describes some of the options companies have.
Accredited Investors vs. Qualified Clients vs. Qualified Purchasers: Understanding Investor Qualifications
Accredited investors, qualified clients, and qualified purchasers are three categories of investor qualification that are important to private fund managers. This post provides an explanation of the differences between them.
Why You Can’t Really Include Non-accredited Investors in Rule 506 Offerings
One common misconception I encounter among startups is the idea that companies raising capital can include non-accredited investors in Rule 506[1] offerings. While it is technically true that a Rule 506 offering may include up to 35 non-accredited investors, what is…