Investing in startups is risky, so many countries have regulations in place to protect people from making risky investments that would put them in a very difficult financial situation should they lose most, or all of their capital.
Most Countries Require One of the Below:
- High Earnings ($200,000 plus, or Spousal Income of $300,0000 plus each year)
- $1 Million Net Worth (excluding primary residence)
- Holds a Series 7, or Series 65 license *Insider tip, a series 65 is easier and cheaper, as the series 7 exam requires a referral, is a longer exam and more expensive
When you’re an accredited investor, you are able to invest in:
- Venture Capital
- Angel Investing
- Private Equity Funds
- Hedge Funds
- Real Estate Investment Funds
Many investment platforms, such as Angel List, have a process to verify that you are eligible to be an accredited investor, before you can start investing. That verification, can then be used elsewhere to begin investing on other platforms.