The accredited investor definition in Regulation D, promulgated by the SEC, plays a significant role in the startup financing ecosystem; the definition basically (as a practical matter) delineates the universe of people who invest in offerings made pursuant to Regulation D, such as many seed financings. This article details changes recently made to the SEC's definition of an accredited investor, and explains how these changes will impact how businesses raise capital.
- Summary by FizzLaw Team
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SEC Adopts New Definition of Accredited Investor