Raising Capital for Your Business: Why Companies Should Avoid Non-Accredited Investors
By Charles Alovisetti
Feb 11, 2025
Startups and growing businesses need capital, but should they accept funds from anyone willing to invest? The answer: probably not. In fact, choosing the right investors—particularly accredited investors—can save you time, money, and future headaches. In this Insights post, we discuss what to look for when selecting an investor and the risks of raising funds from unaccredited investors, including disclosure agreements, preemptive rights issues and IPO complications. Plus, considerations when deciding to work with investors outside of the United States.