Welcome to Investor Lead, we have been in business for 30+ years specializing in accredited investors. You have questions and we have answers. So what is a qualified investor? Today we will be discussing what a qualified investor is, and why they are important. Let’s jump right in shall we?
What is a qualified investor?
There are two types of investors in the United States of America. They are “Accredited Investors” and “Non-Accredited Investors”. Accredited investors are those who meet certain requirements in regards to income, net worth, or specific holdings that allow them to be considered a developer or a stakeholder in a business. These requirements can vary by state and even by company. I’m not going to bore you with the details here, but go ahead and check out the rules on your state’s board of investment examiners’ website.
Non-accredited investors are also important participants in our economy. There is no federal requirement on these individuals therefore they do not require any kind of qualification to invest in many cases.
So why is a qualified investor important?
Most of the time, you will need to be a qualified investor in order to be involved in a private placement. Private Placements are not sold on exchanges like stocks or bonds. Private Placements like real estate and municipal bonds are typically exempt from registration with the SEC due to the exemptions in place for these offerings that do not consider them “Securities” under the SEC’s definition. The reason for this exemption is that they are very small offerings, made by a company seeking capital but not wanting to raise money publicly or attract too much scrutiny from Wall Street.
Do you need qualified investors?
Yes. The purpose of an accredited investor is not to allow wealthy individuals to buy shares in your business and make a quick buck. They are also there to help your company secure funding so that you can focus on the product or service that you are offering. Without a qualified investor, you are out of the gate and it will be very difficult to raise money if you only have friends and family as investors. Sometimes they will be willing to invest even if they do not meet all the criteria we discussed earlier, but no one wants to invest in an unknown, untested business without due diligence.
Where can I find qualified investors?
You’re in luck! We specialize in accredited investor leads and we have been supplying our customers with reliable leads for over 30 years. Contact us today to learn more about our lead options.