From my understanding we should focus on individuals who are accredited investors only in as we build our LP lists ( in addition to any institutions although they are less likely to invest in a new fund manager is that correct? below is a list of the criteria i was able to find but I'd appreciate confirmation if this is correct Who is an accredited investor? An _accredited investor_ in the context of a _natural person_ includes anyone who: • earned income that exceeded $200000 (or $300000 together with a spouse or _spousal equivalent_) in each of the prior two years and reasonably expects the same for the current year OR • has a net worth over $1 million either alone or together with a spouse or _spousal equivalent_ (excluding the value of the person’s primary residence) OR • holds in good standing a Series or license.
Yes, focusing on accredited investors is a strategic approach for building LP lists, especially for new fund managers. Accredited investors meet specific financial criteria, making them eligible to participate in private offerings and better suited to understand the risks involved. While institutions may be harder to attract for new managers, accredited individuals often represent a more accessible pool for initial fundraising.
Platforms like Accredd can streamline the verification of accredited investors, ensuring compliance and helping you efficiently build your LP list while focusing on growing your fund.
Jan 07, 2025 10:06am
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