There are many types of investment situations where unique opportunities are available to those who possess the monetary resources and the financial sophistication to invest in these types of ventures. These business entities need a list of investor leads, but not just leads to the average investor. They need to get a hold of an accredited investor list. How is this group of investors different from the average investor?
The accredited investor can be an individual or an entity. These investors fulfill a special set of requirements stipulated by the rules of the U.S. Security Exchange Commission.
The individual investor must prove that he has at least an annual income of $200,000 that is sustainable over the next two years. For a married couple, the annual income combined must be $300,000 or higher and they must be able to sustain that for two years. If income is not considered, then the investor’s net worth must total at least $1 million, which does not include the worth of the primary residence. These requirements ensure that the investor has adequate reserves to participate in investments that may be deemed riskier without causing a negative impact on the economy in the long-run.
The accredited investor list is important to businesses that need an infusion of capital to fund their venture. Small businesses, in particular, can benefit greatly from the leads coming from this list because they know that these are investors who are proven to possess a large amount of money to invest. One of the toughest things for any start-up is raising the initial capital to build up their business. Accredited investors are people who want to get in on a start-up from the ground up. When the start-up is brought together with the right investor, great things can happen.
Established businesses that want to expand may wish to offer a private placement instead of a public offering of stocks in order to fund a new venture. They can also benefit from tapping into this list of exclusive leads.
One of the main advantages of soliciting funding from accredited investors is that the business entity that is offering the investment opportunity can bypass the normal registration process with the SEC. This is a private offering targeted to investors who are looking to get a piece of a unique investment opportunity that may be a bit riskier than average, but which carries potential for huge gains.
A solid accredited investor list brings together those who need capital and those who have the capital to invest. Some lists contain a targeted group of investors that have a particular interest in specific markets, like real estate, tech and biotech, oil and gas development, or any market where there is a potentially hot investment opportunity. This is perfect for investment brokers who are privy to private placements and who want to build up their client base of wealthy investors. This creates a win-win situation all-around: the investor gets an amazing opportunity to make lots of money, and the business gets the funding to reach the goal that it wants to achieve.