I’ve been busy helping one of our portfolio companies with a cryptocurrency token issue which kicked off yesterday and had to endure…
I’ve been busy helping one of our portfolio companies with a cryptocurrency token issue which kicked off yesterday and had to endure endless hours with US counsel debating the relative merits of a token being a security or not under US securities law. What I’ve come to realise is that in the US, the dice is loaded against the retail investor.
In the US, you usually need to be an accredited investor in order to buy securities, like shares in a startup company, directly from a startup. In its simplest form, in order to become an accredited investor, you must have a net worth, excluding your private residence, of $1m, or an annual income of more than $200,000.
Source/More: The rich get richer: the effect of restricting private securities to accredited investors
