Today's definition of an accredited investor adopted by the SEC is founded on the idea that investors who can bare a loss should be able to invest in potentially lucrative investments, based on income/wealth they are deemed "sophisticated" investors, limiting everyone else to the most cost-burdened and lowest yielding investments such as money market deposit accounts, public stocks, mutual funds, bonds, and ETF's. That means only about 10% of the US population who are considered accredited investors have access to private investments such as VC, Private equity, crypto-based securities or crowdfunding where returns can augment income and create a real nest egg.
During a young professionals's most crucial time to grow their income&savings, their ability to save for a downpayment for a home or retirement is handicapped without access to make small investments in higher yielding investments. Today they are stuck with a 2% savings account that does not beat inflation, costly mutual funds or stock with capped upside. A recent example is Lyft's IPO, where its believed private investors have already reaped the upside, leaving public stock investors to hope the company can overcome its $1bn per year loses and turn a profit while sustaining growth. Further, as a new financial rails are developed in blockchain, those investments are also being limited to only accredited and international investors due to the current definition.
We believe INVESTMENT ACUMEN and exposure to industry trends are a much better measure to define accredited investors in the US, and therefore make more attractive investments accessible. Therefor we want to push a bill through congress to change this definition, opening up more attractive opportunities individuals can make in the amount they wish to invest.
Bring a bill to US Congress to augment today's definition to provide a diverse set of metrics:
We are organizing individuals across the nation to speak up to their congressional representatives. Signup and we will send information on who to contact and suggested messaging. Each voice counts, and together we will be heard.