I am in the middle of a Rule 506 all accredited investor offering. One of the folks who wants to invest in my company was stumped at my accredited investor questionnaire.
He earns $175,000 a year. He doesn’t have a $1M net worth. He wanted to invest. I told him I was really sorry. He couldn’t invest because he isn’t accredited.
He told me he is married, and his partner Jim makes $175,000 a year. Therefore, he said, he meets the income test–because with spouse he makes more than $300,000.
I still had to tell him he couldn’t invest because of current federal law which does not recognize the validity of same sex marriages. For more information on this topic, check out startupequality.com.