The U.S. Securities and Exchange Commission has very strict rules about who can raise investment funds for privately held businesses, and how they are allowed to go about doing it. At the moment, this is primarily limited to raising money from very rich people who qualify as Accredited Investors, and with whom you already have a pre-existing relationship.
After participating in a seminar I delivered a couple of years ago, an experienced angel investor commented to me he would never write another check for $250,000 to a single startup. Instead his new strategy would begin writing checks for $25,000 to $50,000 for many companies.
Rob Wiltank’s study a few years ago validated what many angels have suspected for