207) If an issuer receives more than $5,000 from a non-accredited investor
, it will not be in compliance with the Act, ineligible for the exemption, and in violation of the securities registration requirements under North Carolina law.
There are specific information requirements (including audited financial statements) that apply if an issuer sells its securities to a non-accredited investor
under Rules 505 or 506, and all non-accredited investors
in a Rule 506 offering must either be financially sophisticated or be represented by a qualified purchaser representative.
42) Form D filings report that in 2012, out of an estimated 234,000 investors who participated in Regulation D offerings, only ten percent of offerings included a non-accredited investor
As a result, Reg A+ preempted all state registration and qualification requirements for Tier-2 securities either purchased by an "accredited investor" or purchased by anyone else so long as the non-accredited investor
refrained from purchasing securities valued at more than 10% of their net worth or annual income.
The purpose of the series is to better educate issuers and the non-accredited investor
community on the topic of equity crowdfunding, financial technology, and bridging the gap to access capital to spur economic growth and development.
Advisors can expect to have more conversations in the near future with their non-accredited investor
clients about the merits of specific startup small business investment offerings and venture investment in general.
Very often, Rule 506 offerings are limited to accredited investors for the practical reason that SEC roles require very detailed and precise written offering materials if even one non-accredited investor
is among the purchasers.
In December 2008, Martinovich recommended and sold to an elderly, non-accredited investor
a $75,000 purchase of Venture Strategies units without having reasonable grounds for believing the investment was suitable for him.
OTC: DATI) is in discussions to acquire a stake in a regulation CF-compliant crowdfunding portal, where both accredited and non-accredited investors
can invest in high-growth high-tech startup businesses, the company said.
Registered as an Exempt Market Dealer (EMD), FrontFundr uses technology to assist companies in raising capital from accredited and non-accredited investors
through a streamlined online investment process.
Feldmeier hopes to someday see non-accredited investors
, aka people who aren't wealthy, leveraging (https://medium.
LIIF is the first Community Development Financial Institution on the platform available to non-accredited investors