When you’re building a startup, the search for the right investors—champions who believe in your mission and can write a meaningful check—is relentless. For years, though, there’s been an invisible velvet rope: most Americans, regardless of their experience or insight, haven’t been allowed to invest directly in early-stage startups unless they already had seven-figure wealth or six-figure salaries. But thanks to new legislation racing through Congress, those barriers that have been there for conventional "Reg D" financings could finally be coming down—and that’s a huge deal for founders everywhere.
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The Big Change: Opening the Club to the Knowledgeable—Not Just the Wealthy

The U.S. House has overwhelmingly passed the Fair Investment Opportunities for Professional Experts Act. Instead of limiting accredited investor status (and access to private deals) to just the rich, the bill would let people qualify based on relevant licenses, education, or real-world job experience. The SEC is now tasked with building a testing framework to let savvy, non-wealthy individuals officially prove their investment understanding—even if they don’t have a million in the bank or a $200,000 salary.
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For founders, this is game-changing:
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• More investors can participate. Now, millions of “sophisticated but not wealthy” supporters—think savvy technologists, repeat founders, experienced operators—could legally back your next round.
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• Community and customer investing gets real. Want your earliest users, local ecosystem leaders, or alumni who “get it” to sit at your cap table? They’ll finally have a regulatory pathway to do so.
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• Faster fundraising, broader signals. The old “how many checks can you raise from the same small pool?” headache gets serious relief with a more diverse, representative set of potential backers.
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Why This Isn’t Just About More Checks—It’s About Better Checks

Money is money, but mission-aligned capital—especially from folks who have “been there, built that”—has always been the holy grail for early-stage founders. Letting real operators, industry veterans, and diverse voices into your investor mix could transform how startups are funded, supported, and grown.
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• Shared understanding = better partnerships: Investors who genuinely understand startup risk are more likely to add value, be patient, and ride out the tough times with you.
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• Broadening equity, democratizing innovation: This reform means startup ownership and wealth creation can start to look more like America as a whole—not just a handful of ZIP codes or networking circles.
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What Founders Need to Know
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• The bill still needs Senate approval before it becomes law. But bipartisan momentum is strong, and investor/startup advocacy groups are pushing hard for passage.
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• The SEC will develop new pathways: Expect practical tests or credential-based qualifications—think Series 7, CFA, or even industry-specific expertise.
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• Investor education is still key: Private investments are riskier, less liquid, and more complex. As more investors cross the finish line, expect fundraising to become both faster and more educational.
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• This may change the equation for crowdfunding platforms: Platforms like StartEngine have become somewhat popular as an alternative method to fundraising from the general public, but there are important pitfalls to be aware of... see my article on The Pros and Cons of Raising Money on Crowdfunding Platforms.
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The Bottom Line: Fundraising Tailwinds for Founders

If you’re a founder hustling for capital—or hoping to tap into your network of super-fans, alumni, or ecosystem peers—this law could be the start of a new era. More doors opening, more thoughtful support, and a chance to redraw the VC map far beyond the handful of people who could already write those early checks.
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Stay close to your communities, keep them informed, and be ready to turn curiosity into cap table commitment. The age of the “main street” investor just might be around the corner—and for founders, that could make all the difference.