There are many benefits associated with having the designation of ‘accredited investor’. For those who qualify and have the financial standing and capability to participate as such an investor, the opportunities can be significant. You’ll have access to a class of investments that are not available to the average investor public.
As an investor with the required accredited status, you are deemed to have a level of financial sophistication or financial wherewithal that allows you to enter into highly profitable opportunities and avoid otherwise cumbersome obstacles and regulations incumbent upon others.
Regulation D and the Benefits of Accreditation Status
Rule 506(c) of Regulation D, implemented as a result of the JOBS Act is nurturing economic growth through a process that may be referred to as peer-to-peer investing or crowdfunding.
Crowdfunding has truly opened up the playing field for entrepreneurs when it comes to gaining access to capital. The traditional way of raising capital often involves significant legal fees, marketing costs and other registration expenses that can quickly add up to tens if not hundreds of thousands of dollars.
As an accredited investor you have the freedom to participate in various forms of investment opportunities, including: private equity funds, angel investment opportunities, venture capital firms, and hedge funds. The types of investments available to these investors minimize the risks compared to the upside profit potential.
Peer-to-peer investing or crowdfunding is truly enabling accredited investors as well as businesses in which they invest to realize significant success within accelerated timeframe not previously known in years past.
Access to Investments With High Potential
Accredited investors arguably also have access to some of the best investments available in the marketplace. For instance, some of the top investment professionals operate in the arena of hedge and private equity funds, which typically only allow accredited investors the chance to invest. The best of the best deals are generally available and accessible to the best investment talent and those with greater investment resources than what may be referred to as the average investor. Many of these investment professionals are highly successful and experienced at discovering and investing in companies’ ideas and projects with the highest potential for success.
If you are an investor with proper accreditation status, you may have already discovered the opportunities you have available to invest in a great product, service or idea with tremendous potential.
