The "Accredited Investor" net worth standard refers to the standard for accredited investors in Regulation D of the securities laws, which provides an exemption from SEC registration which is critical to the startup financing ecosystem. The Dodd-Frank Act, passed in 2010 in the wake of the financial crisis, mandated changes to the accredited investor standard. This article reviews the nuances of the final changes, and speculates on how this will impact the forms of financing for startups.
- Summary by FizzLaw Team
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Final Rule on Change to "Accredited Investor" Net Worth Standard