For individuals: An accredited investor is a natural person who has either: (1) earned more than $200,000 as income (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year or (2) a net worth of over $1 million - this could be alone or together with a spouse (but excluding the value of the person’s primary residence). Although there are other exemptions based on financial sophistication, these monetary thresholds are the most common benchmark to determine accreditation status.
Previously you could only be an accredited investor by financial qualifications stated above. Today you can be certified as an accredited investor by achieving certain qualifications or have employees that have these qualifications.
In addition, there are many new opportunities in the crowdfunding industry to invest without being an accredited investor.
Check out VenSurf.com as our affiliate investment platform.
Family offices date back to the 19th century when the likes of John D. Rockefeller and other tycoons spearheaded them as effective tools to manage their sprawling fortunes. What is a family office? Traditionally, it’s a private company whose purpose is private wealth management for families with more than $100 million in investable assets.
These days, however, you don’t need to be a household name to consider forming one. Indeed, family offices have recently been growing at a steady pace, fueled by the enormous increase in private wealth that the past two decades have witnessed. There are a number of reasons for this trend, ranging from the creation of tech and Wall Street fortunes to the momentous transfer of assets between generations, as well as an economic climate that favors entrepreneurs who can strike gold via innovative ideas and businesses.
An angel investor (also known as a private investor, seed investor or angel funder) is a high-net-worth individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity in the company. Often, angel investors are found among an entrepreneur's family and friends. The funds that angel investors provide may be a one-time investment to help the business get off the ground or an ongoing injection to support and carry the company through its difficult early stages.
Private equity is a general term used to describe all kinds of funds that pool money from a bunch of investors in order to amass millions or even billions of dollars that are then used to acquire stakes in companies.
Technically, venture capital is private equity. But "PE" is often associated with the funds trolling for mature, revenue-generating companies in need of some revitalization -- maybe even some tough choices -- in order to become worth much more.
Investment banking is a specific division of banking related to the creation of capital for other companies, governments, and other entities.
Investment banks underwrite new debt and equity securities for all types of corporations, aid in the sale of securities, and help to facilitate mergers and acquisitions, reorganizations, and broker trades for both institutions and private investors. Investment banks also provide guidance to issuers regarding the issue and placement of stock.
Invention and innovation drive the U.S. economy. What’s more, they have a powerful grip on the nation’s collective imagination. The popular press is filled with against-all-odds success stories of Silicon Valley entrepreneurs. In these sagas, the entrepreneur is the modern-day cowboy, roaming new industrial frontiers much the same way that earlier Americans explored the West. At his side stands the venture capitalist, a trail-wise sidekick ready to help the hero through all the tight spots—in exchange, of course, for a piece of the action.
Well, simply put, a hedge fund is nothing more than an investment company that invests its clients' money in alternative investments to either beat the market or provide a hedge against unforeseen market changes.
Technically speaking, a hedge fund is typically structured as a limited partnership. Third-party investors like pension funds, banks, and wealthy individuals invest in the partnership as limited partners while the hedge fund management group serves as the general partner.
The hedge fund's management invests the limited partner's money in any number of different ways in an attempt to generate what the pros call "alpha," meaning a risk-adjusted return above the market.