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To be a VC doesn't one need to be an accredited investor? Or does that only apply when using one's own assets to invest? In this case, it appears these student investors would probably not meet accredited investor criteria, but it may not matter since it's not their money they're investing in the first place.

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Specifically:

"Under the Securities Act of 1933, a company that offers or sells its securities must register the securities with the SEC or find an exemption from the registration requirements."

Edit: Emphasis and point of my statement "exemption" (see below)

http://www.sec.gov/answers/accred.htm

Offering securities is a whole different ballgame then becoming an investor, say, in the pizza shop or web startup. As shown by "friends and family" investing situations.

It depends on size.

http://www.sec.gov/answers/regd.htm

http://www.sec.gov/answers/rule504.htm

http://www.sec.gov/answers/rule505.htm

Etc.

I think that's to be an angel investor but I could be wrong. Plus I think there's new legislation that makes anyone able to invest in startups, which is why Funders Club works.

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