Avoiding Unintended Consequences of Revising the SEC’s Accredited Investor Definition
Angel Capital Association
OCTOBER 2, 2023
The SEC’s Accredited Investor Definition has been in place since 1982. And in those cases where VCs follow an angel investment, any drop in the number of angel-back companies would also have an adverse effect on VC funding, even though VC funding is less reliant directly on the Accredited Investor Definition.
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