> I’d like to CHALLENGE every woman in tech who’s a) got a nice car, b) owns a nice house, or c) is making over $125K a year
In the US you need to have an income of greater than $200k/year or assets not including your home of over $1 million in order to be an accredited investor. [1]
You don't have to be an accredited investor to invest in startups, but it does open up the company to additional annoying reporting requirements such that almost all advisors suggest staying away from such. From info on his own assets that he's posted in the past, it seems Dave's chosen to skirt said law himself, but it seems quite brash to (without disclaimer) push others to do the same.
This is technically true at the moment but not for long. Once the crowd funding portion of the JOBS act is accepted by the SEC, anyone can invest up to 10% of their annual income in startups.
What's to keep me from investing all my money in my own startup? I note attempting facetiousness, I'm truly curious how they differentiate me starting my own business and investing all my own money (at a substantial percentage of my reported income) or starting a business with a buddy and putting in a serious amount of cash.
There's a provision for raising up to $1 million from "friends and family" (specifically pre-existing contacts only, no solicitation). I presume, though am not certain, however, that personal funds of the executives are exempt from that.
Nothing. There's also nothing to stop you from having a $30k income, and taking out a $130k unsecured loan, with a consequential $0 net worth (EG: $130k now n the bank and a $130k loan balance).... and going to Las Vegas and putting all $130k on a single spin of the roulette wheel-- or a weekends worth if they won't' let you bet that much.
You can blow all that money gambling if you want, but you can't invest it in startups. (At least not as an accredited investor... and places like angel list will only deal with accredited investors.)
In the US you need to have an income of greater than $200k/year or assets not including your home of over $1 million in order to be an accredited investor. [1]
You don't have to be an accredited investor to invest in startups, but it does open up the company to additional annoying reporting requirements such that almost all advisors suggest staying away from such. From info on his own assets that he's posted in the past, it seems Dave's chosen to skirt said law himself, but it seems quite brash to (without disclaimer) push others to do the same.
[1] http://en.wikipedia.org/wiki/Accredited_investor