I would be very careful when it comes to soliciting the
services of so-called matching sites as Robert suggested. Reputable investors,
let alone professional investors, do not rely on those sites as a source for
their deals. There are a number of legal and strategic reasons for this.
Besides, most of these sites have only a single purpose, namely matching your
money with the owner of the site.
Where Robert raised a valid point is that federal securities
laws may actually prevent you from investing in restricted/unregistered shares
of development stage companies unless you match certain wealth and
sophistication criteria. Simply put, you should have (i) a net worth of $1
million (now excluding your principal residence), or (ii) an annual income of
$200,000 or $300,000 together with your spouse, or (iii) have experience in
financial matters, including investing in restricted or unregistered
While this may sound pretty exclusive, these requirements
are actually in place for your own protection. Investing in
restricted/unregistered shares of development stage companies is ultra risky.
Out of 10 investments, 7 are usually a complete failure, 2 perform somewhat
below everybody’s expectations, and only 1 comes close to the anticipated
performance. Moreover, restricted/unregistered securities are illiquid; you
can’t sell them if you need the money.
If that still doesn’t deter you, you should explore
investing with a small venture capital fund or investment club. Such funds or
clubs pool the capital of many individual investors like yourself to make
investments that are far less likely to fail than if you venture out there on
If you have additional questions, please feel free to
I hope this helps.
Advanced Document Design for entrepreneurs, intermediaries, and the financial services industry.