By Adam Sharp As it stands today, there are two separate startup investing ecosystems.
One is for accredited investors only, those who either make $200,000 a year in income or are worth more than $1 million. Accredited startup investing deals have been happening online since 2012 on sites like MicroVentures, AngelList and FundersClub.
Accredited investor deals are extremely easy to conduct. Startups use an exemption to securities laws called Regulation D. This means they don’t have to file a bunch of paperwork as they would with most security offerings. And they can raise unlimited funds.
Reg D deals have accounted for the vast majority of startup …read more
