investing in the future
Scott has always been the "First In" investor in his start-ups and ventures. At all times financing for Scott's start-ups was provided first by Scott and then by CFO's that he hired from contracting services. The CFO's sourced all the rest of the funding from, exclusively, Securities And Exchange Commission certified equity "Credentialed Investors" after providing potential investors with extensive disclosure documents drafted by huge law firms like Brobeck, Latham, MOFO, etc. By law, an SEC Credentialed Investor must have met the following criteria:
- An accredited investor is someone with a high income or net worth who can invest in unregistered securities.
- Accredited investors gain access to investment opportunities like hedge funds, private equity, and venture capital.
- To qualify, individuals must earn over $200,000 annually or have a net worth exceeding $1 million, excluding their primary residence. The SEC has expanded qualifications to include holders of certain professional credentials and knowledgeable employees of private funds. Accredited investments offer high returns but involve high risks, fees, and minimum investment amounts.
Criteria for Accredited Investor Status
Rule 501 of Regulation D of the Securities Act of 1933 (Reg. D) provides the definition for an accredited investor. Simply put, the SEC defines an accredited investor through the confines of income and net worth in two ways: A natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year; A natural person who has an individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person.
The people that worked in the financial parts of his start-ups were certified finance experts.
