Accredited Investors

By Graeme Thickins, ACA PR Team

Did you ever wish you’d have had a chance to meet or chat with someone at the ACA Summit or any of our other events, but never had the opportunity to run into them? Well, now you can — via brief interviews posted on the new ACA video library. It’s your chance to get to know interesting people, with great insights, better. The full set of ACA videos are posted on our Vimeo channel. You can view these videos without a Vimeo account, or you can create a free account, and then follow any channels of your choice — which we suggest you do with the ACA channel, of course! If you do that, then you’ll be notified whenever there’s a new video posted on our channel.

By: Marianne Hudson, ACA Executive Director

Need compelling reasons to come to the 2017 ACA Summit?  Here are eleven reasons you need to travel to San Francisco on April 26-28.  Sure, ACA will share some of the content from the event with members afterwards, but there are many things you can only get by actually being there:

  • The vibe.  ACA members are loud – in a very good way.  They love to share real stories and best practices that make a difference in your returns.  The sound of voices at an ACA Summit reception is truly unique and well, loud.

By: Matt Dunbar, co-founder of the South Carolina Angel Network and managing director of the Upstate Carolina Angel Network.

This post originally appeared in Upstate Business Journal.

On Father’s Day weekend, I indulged a bit in watching the last round of the U.S. Open golf tournament and the last game of the NBA Finals. My lovely wife, who doesn’t exactly share my interest in sports (other than college football), opined that she found the sports to be boring — except right at the end when you find out who’s going to win.

Matt Dunbar contributed to this article. He is the co-founder of the South Carolina Angel Network and managing director of the Upstate Carolina Angel Network.

This post originally appeared in Upstate Business Journal.

Risky business

Investing in startups is not for the faint of heart. These businesses are just beginning to develop, and their expenses typically exceed their revenue. In fact, most of them will fail.

But you could find yourself sitting on a goldmine. Case in point: Andy Bechtolsheim, co-founder of Sun Microsystems. He invested about $100,000 in Google just months after founders Larry Page and Sergey Brin created the tech giant in their garage.

Bechtolsheim is now worth about $3 billion. That could be you.

By: Marianne Hudson, ACA Executive Director

Ever wonder how your investment activity and background compares to other angels in the US?  Take The American Angel survey to put in your information and get early access to detailed reports to learn more. 

ACA is partnering with Wharton Entrepreneurship to develop the first ever large dataset of US angel investors to understand who angels are demographically, how they became angel investors, how angels make decisions, and what level and type of investment activity they have.  The project should benefit angels as an asset class as it brings more visibility to angels, supports a stronger early-stage investing environment, and lead to better public policies to support angel investing and innovative startups.  It just might refute a lot of assumptions about angel investors that are incorrect.

By: Marianne Hudson, ACA Executive Director

Are you an accredited angel investor?  We need ten minutes of your time to make a big difference for startup investing.  Please take this confidential survey to help us understand who angel investors are, how they became angels, and what factors influence their investing activity.

Today ACA and Wharton Entrepreneurship announced a partnership to complete the first-ever comprehensive demographic study of angel investors across the U.S.  We believe this study will help identify characteristics of angel investors that have never before been understood. It is critical for entrepreneurs, economic development entities, private market makers, regulators and legislators to understand who angel investors are, in order to drive effective policies to ensure a robust angel investing marketplace and for startups to better access equity capital.

By: Marianne Hudson, ACA Executive Director

Many angels, startups, VCs and the startup ecosystem have asked for more clarity about demo days for a couple years now.  These events seem to meet the definition of “general solicitation” and most investors don’t want to invest in companies that publicly advertise, but they have seen demo days as an important part of our world for decades.  The confusion may get clarity because of the work of a bi-partisan group of Members of Congress.

The Angel Capital Association supports HR 4498, the Helping Angels Lead Our Startups Act (HALOS Act) and want to thank Reps. Chabot, Sinema, Hurt and Takai for introducing this bi-partisan bill last week.  We believe the HALOS Act helps more job-creating startup companies raise the funding they need because it removes a barrier to funding.  There has already been discussed in a hearing of the House Financial Services and could be on a positive track.  A similar bill is also in the Senate, with bi-partisan sponsors as well.)

By: William Carleton, Counselor @ Law, and volunteer chair of ACA Public Policy Advisory Council

Yes, there's Title III under the JOBS Act, promising equity crowdfunding (think Kickstarter or IndieGoGo, just not restricted to awards or products, but instead offering ownership in the company); yes, there's Reg A+, also bequeathed by the JOBS Act; and there are a plethora, now, of state crowdfunding laws that lower the bar to who may invest in private companies.

By: Villette Nolon and Heather Krejci, Angel Capital Association

Yesterday’s (January 13, 2106) ACA webinar on Investor and Entrepreneur Experiences with Accredited Investing Platforms was a great kickoff to the year. When you watch the recording, you will see why a record number of investors attended.  The accredited platform space is growing exponentially and the rules are changing rapidly.  Highlights of this timely webinar include:

By: Marianne Hudson, ACA Executive Director

December 18 was a very big day for angel investors.  Not only did the SEC put out a staff report that recommends tweaks to the accredited investor definition, but Congress passed a big tax act that makes permanent the 100% exemption of capital gains.  Here’s what you need to know in connected blog posts:

Accredited Investor Definition – A mix of gifts and lumps of coal in our stockings

Not far from the US Capitol Building, the SEC quietly released a report from its staff on the Accredited Investor definition on the same day.  As many angels will remember, the SEC is required to study the definition by Congress in the Dodd-Frank Act.  Time will tell if this staff report fully addresses the requirement or if it informs future rulemaking by SEC Commissioners.

To ACA’s delight, some of the recommendations in the report actually match what our leadership has suggested in multiple meetings and letters, such as allowing people who are sophisticated but don’t meet financial thresholds to be accredited.  As in many things, however, there are also some recommendations in the report that are different than most angels would like.  All in all, the SEC staff’s report could have been much worse – for instance it does not include increasing financial thresholds for income to $450,000 and wealth to $2.5 million as some organizations advocated.

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