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Access Denied: The Investor's Barrier to Wealth Creation
The concept of accredited investors creates significant barriers to wealth creation, preventing many savvy individuals from participating in lucrative private market opportunities. Becoming an accredited investor typically requires a minimum net worth of over $1 million, which restricts access to valuable deal flow and investment options in early-stage companies. This restriction implies that many capable investors, particularly those who may be influential in their fields, lack pathways to engage in private investments unless they accumulate wealth through public markets first. Accredited investors often receive exclusive opportunities that allow them to invest at lower valuations before companies go public, leading to greater potential returns. Meanwhile, average individuals miss out on these wealth-building opportunities, impacting their ability to gain financial independence. This dynamic creates a pathway for venture capitalists and early investors to accumulate wealth, further widening the wealth gap and emphasizing the need for reform in investment access.