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Comment by infecto | Hacker News Reader

What investments are you interested it that require accreditation?

I’ve wanted to invest $10k. Not stellar, but not nothing. YC started with $20k per investment.

The accreditation requirement is the blocker. I should be able to risk $10k for a mission I believe in.

I am an outlier, but in general I don’t believe in hampering outliers in the name of safety. It’s an approach that tends to dampen the high notes while being of dubious value for the low notes.

Crypto and WSB shows that people will lose money if they so choose. Not being able to make investments merely shuts everyone out of the Silicon Valley reward market beyond a select few. It’s worth asking yourself if removing these protections would really cause as many problems as the theory predicts.

The income and wealth requirements are fairly low. If you don't meet either one, losing $10k is potentially dangerous.

They aren’t low, and it’s not dangerous for me to risk $10k of my own savings.

When the money is gone, the crying begins alongside the calls that,”There Ought to Be a Law” (TOBOL)…

Then a new class of investors starts the cycle all over again.

“It’s all just a little bit of History Repeating.” -The Propellerheads featuring Shirley Bassey

Net worth with spouse or partner over $1 million excluding primary residence or pre-tax income of $200k individually or $300k with spouse or partner over the last two years. That is very low, and the net worth threshold in particular includes plenty of retired seniors who shouldn't be making risky investments.

You’re right. I didn’t realize it was $300k with spouse. Thanks for the correction (and the good news).

What I find somewhat strange is that you are allowed to risk the $10k... if you play the role of a mostly-client or donor and participate in pre-ordering or crowdfunding. But if you're to get back money or equity only then you get all those rules.

It’s not so strange at least under my mental model. The way I see it is accreditation is less about you burning your own money. After all you can go spend it on anything, you could go buy options, some otc stocks.

Where it steps in is investments where the language is not clear. Perhaps a PE fund, special debt agreements something where the legal language in the investor documents requiring lawyers and investors that hopefully have the experience to touch it. Wealth is a pretty decent measure without going into certifications. It’s far from perfect but decent for the masses.

Cryptocurrencies turn every investor into an evangelist for their investment. On some level, it’s a multi-level marketing scheme. Many (most?) people bemoaning any safety barriers to investors are talking their book.

How is that different from meme stocks?

Excellent rhetorical question.

Anyone looking for a way to split hairs will continue the controversy that’s not controversial.

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