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by person_of_color 2069 days ago
Anyone angel on a FAANG salary, not FB IPO millions?
3 comments

From my stint working in the bay area, it seems like tons of older low level executives at tech companies (probably bringing in comparable income to staff engineers at FAANG) treat angel investing like golf. Most of the wealthy folks will do it at least once as a social activity, but most of them don't really know what they're doing.
it's like buying a lottery ticket - good if you win, doesn't hurt if you lose.
Not sure how common but I know quite a few angel investors that have just been employees at tech companies. Most weren’t even at primarily FAANG companies. Realistically at least by SV income standards, it doesn’t take much to be an entry level angel investor.
You have to be an accredited investor, most even non-faang-but-sv-sfbay senior swes can demonstrate this after 3 years.
You can also pay a few hundred dollars to take the Series 65 license exam and obtain accredited investor status through certification.
Isn’t the requirement $2M net worth? Or did that change?
250k/yr in income or 1m in net worth. So many (most?) SV engineers are qualified.
Correction: an individual income - 200k/yr as of Oct-15, 2020 [1]

> Any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year

[1] https://www.ecfr.gov/cgi-bin/retrieveECFR?gp=&SID=8edfd12967...

Also if you're married, joint income of $300k. For 2 people working in Silicon Valley, that's easily achievable.
Maybe at FAANGs, but $250K is far above the median SWR salary in SV.
Maybe for salary but not for TC. I suspect median TC in the bay area is close to $250,000 just because of how many people are earning $300k+ at public companies.
According to levels.fyi, you're right: https://www.levels.fyi/Salaries/Software-Engineer/San-Franci...

Median Compensation Package: $237,000

- Base Salary: $152,000

- Stock Grant: $85,000

- Bonus: $1,000

Real world isn’t Blind
Accredited Investor: Basically $200k annual income or $1m net worth

Qualified Client: $2m net worth

Qualified Purchaser: $5m in “investments” not including the fund invested into

</venture compliance nerdery>

How? do vests count as income here?
Anything that shows up on your tax return.