Someone who has made more than $200,000 in the last two years, ($300k if married) OR net worth > $1mm.

(or so sayeth the article.)

And the problem with the "new rules" is that they require the "accredited investor" to provide all sorts of documentation to the startup, to certify that they are, indeed, an "accredited investor". We're talking tax returns, or a certified document from their accountant, etc.

This is going to add extra friction to the process and may negate a lot of the purported benefits of this whole mechanism, given that investors were previously allowed to simply "self certify" their status as an "accredited investor".

See, for example, http://wraltechwire.com/will-sec-rule-506-c-changes-help-cur...

for some discussion on that point.

can't they do that by proxy? i go to my bank, i show them evidence that i have made $200k or more in the last 2 years, or that i have a million+ net worth. i get the document notarized, i give the company the notarized document by the bank as evidence. my paperwork stays private.