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?

4 Comments
 

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.

 
Most Helpful

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. 

 

Aliquam iste voluptatem sint nihil. Totam aut rerum iure debitis eius molestias. Eos quis ipsa qui autem quod quis. Soluta sint illum cumque magnam eos.

Quia soluta nostrum qui vitae beatae eos modi. Iusto qui voluptatem nam necessitatibus. Assumenda quia eos quis praesentium enim porro.

Maxime ut earum velit perspiciatis quasi eius fuga. Voluptates consequatur et qui veritatis provident. Libero illum provident velit quo numquam adipisci. Omnis molestiae voluptatem repellendus iure. Enim officia cumque excepturi et magnam reiciendis. Nisi ea tempora provident beatae non.

Quia laboriosam vitae saepe. Qui ex natus voluptas earum aspernatur modi aliquam.

The poster formerly known as theAudiophile. Just turned up to 11, like the stereo.

Career Advancement Opportunities

August 2026 Hedge Fund

  • Point72 99.0%
  • D.E. Shaw 98.0%
  • Citadel Investment Group 97.0%
  • AQR Capital Management 96.0%
  • Magnetar Capital 95.0%

Overall Employee Satisfaction

August 2026 Hedge Fund

  • Magnetar Capital 99.0%
  • D.E. Shaw 98.0%
  • Blackstone Group 97.0%
  • Citadel Investment Group 96.0%
  • Two Sigma Investments 94.9%

Professional Growth Opportunities

August 2026 Hedge Fund

  • AQR Capital Management 99.0%
  • Point72 98.0%
  • D.E. Shaw 97.1%
  • Citadel Investment Group 96.1%
  • Magnetar Capital 95.1%

Total Avg Compensation

August 2026 Hedge Fund

  • Portfolio Manager (9) $1,648
  • Vice President (27) $464
  • Director/MD (11) $372
  • NA (9) $320
  • Engineer/Quant (83) $287
  • 3rd+ Year Associate (26) $284
  • Manager (4) $282
  • 2nd Year Associate (32) $253
  • 1st Year Associate (76) $193
  • Analysts (233) $178
  • Intern/Summer Associate (29) $145
  • Junior Trader (5) $102
  • Intern/Summer Analyst (276) $95
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
kanon's picture
kanon
99.0
4
Secyh62's picture
Secyh62
99.0
5
Betsy Massar's picture
Betsy Massar
98.9
6
dosk17's picture
dosk17
98.9
7
CompBanker's picture
CompBanker
98.9
8
GameTheory's picture
GameTheory
98.9
9
DrApeman's picture
DrApeman
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”