Basically, all investors must have a role in generating their own profits (more than just voting rights) to be Joint Venture partners. This only works with a small number of investors whom you know very well (3-5). If you get more than that, it’s unworkable. If all are active, they can be unaccredited.
Should You Really Start a Fund?
We get potential clients who reach out to us every week who want to start a fund. While we could simply take their money and set them up with fund offering documents, we actually talk a lot of people out of doing a fund. Why? Because they don’t have the necessary...