4 Factors Important for Angel Investing: WAC2011

Article by Tim Berry  Willamette Angel Conference Investor, and Founder of Palo Alto Software:

These are the top four things Wade and his group looks for in the companies his organization is considering for investment:

1. Entrepreneurial expertise

2. Affordable loss

3. Early “yes” answers

4. Milestones met

Read more: http://www.businessinsider.com/a-seasoned-angel-investor-highlights-these-4-factors-2011-2#ixzz1EuJpZJhx

New Rules for Accredited Investors- Home Equity doesn't count

http://angelsoft.net/blog/2010/08/03/sec-revises-accredited-investor-standard/

In the Dodd-Frank Act enacted on July 21, 2010, the Securities and Exchange Commission has been instructed to amend the net worth standard for an “Accredited Investor”. The new standard excludes your primary residence as part of the $1 million net worth threshold.

Accredited Investor status is based on either net-worth or annual income. Before the Dodd-Frank Act, an accredited investor was required to have at least $1 million in assets, $200k in personal annual income or $300k in joint-spousal annual income. With the Dodd-Frank Act in place, an accredited investor must have at least $1 million in assets besides the value of your primary residence or meet the annual income requirements.

The logic for the change is that a primary residence is not truly a liquid asset as it is depended upon for the basic need of shelter. While it is unfortunate that some accredited investors have been stripped of their status, the damage is far less than it would have been with the original proposal to adjust all requirements for inflation since 1982!