How do I raise money from non accredited investors?
Managing around 500k under the table for people. I’m trying to do it legitimately now that it’s growing. Creating a hedge fund IMO isn’t worth it because I’m managing pennies in comparison. Also it limits me only to accredited investors. Most of my base are unaccredited investors.
How can I do this?
I guess my goal is to create something like the Titan investing app. But creating an app is not a goal right now. Just to emulate their business platform. Allowing an unlimited number of unaccredited investors/ they have over 500m in AUM.
Private placements - 506 B 35 max unaccredited investors Crowdfunding - 5m dollar limit?
As far as i understand you cannot. you can manage small size of AUM even $100k but they should be accredited so that you dont flout any of the regulations. You dont need to get a full fund structure but there should be some legal docs stating what you do to protect you as well.
I'm not super familiar with the legalities of this so take this with a grain of salt. Set up an LLC, LLP, or LP and the "Non accredited investors" will join your firm as a non-managing partner. However, this is a pretty shady method. Basically, treat the investors as non-managing partners so that they cannot access your company's bank account, and just manage their money that way. As if you started a business together and they don't want to be involved in the operations of the firm.
I would talk to a securities lawyer or someone who has worked with SEC regulation in the past before even attempting this.
Is it possible to guarantee principal invested with your personal funds held in an escrow account?
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