Non-Accredited Investor

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Non-Accredited Investor

An investor with a net worth of less than $1 million who has had an annual income of less than $200,000 ($300,000 with a spouse) in each of the past two years. Under Regulation D, no more than 35 non-accredited investors are allowed to participate in the private placement of a security, company, or hedge fund. As a result, many investment vehicles target high net-worth individuals.
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In March 2015, the Securities and Exchange Commission finalized rules under Title IV of the 2012 Jump Start Our Business Start-up (JOBS) Act, paving the way for private companies to raise up to $50 million from non-accredited investors.
It has taken advantage of new investment regulations outlined in the 2012 JOBS Act, which allows startups to raise up to USD50m from accredited and non-accredited investors.
Using this strategy, you can conduct a legally compliant offering of an investment opportunity that you can advertise however you choose, with both accredited and non-accredited investors.
Regulation A+ bumps the limit to $50 million annually and also allows non-accredited investors to contribute.
Broadly, under Rule 506(b) an issuer can issue securities to up to 35 non-accredited investors.
The Ontario Securities Commission (OSC) recently issued a progress report on their review of these exemptions to facilitate capital raising (OSC Progress Report) and we are encouraged that they are contemplating the development of an OM exemption in line with Alberta's so we can expand opportunities to non-accredited investors in Ontario.
The quiet Rule 506 offering prohibits general solicitation but allows companies to sell securities to up to 35 non-accredited investors in addition to accredited investors.
In order for a company like EquityNet to offer crowdfunding to non-accredited investors, it must register with the U.
This may be the favorite exemption for the entrepreneur seeking to syndicate a small multi-family project or neighborhood shopping center offering, for the following reasons: general solicitation, advertising, cold calls, mailings and the like may be employed, permitting new investors to be solicited and brought into the fold for this and future transactions; investors may be enticed by the prospect of acquiring a fully tradeable security not subject to the strict resale limitations of other privately placed securities, no limitation exists on the number of non-accredited investors which may be brought in, widely opening markets, and transaction costs should be reduced since the disclosure requirements are reduced as is the time involved from contract to closing.

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