Accredited Investors

Certain securities offerings that are exempt from registration may only be offered to, or purchased by, persons who are “accredited investors.”

What is an Accredited Investor?

An accredited investor is an individual or company or other type of legal entity that meets critera defined by the SEC, such as a high annual income or net worth, that qualifies the entity as financially sophisticated.

Is being an Accredited Investor required?

It depends on the offering. Some offerings are only be available to accredited investors. Others allow non-accredited investors. However, there are often contribution limits for non-accredited investors whereas accredited investors are often not limited.

How do I prove that I'm accredited?

During the registration or investment process you will be presented with a list of available qualification options. Select the option that best describes your situation. Additionally you may be asked to provide financial statements or a letter from your CPA to verify your selection.

Examples of Accredited Investors

  • earned income that exceeded $200,000 (or $300,000 together with a spouse or spousal equivalent) in each of the prior two years, and reasonably expects the same for the current year
  • has a net worth over $1 million, either alone or together with a spouse or spousal equivalent (excluding the value of the person’s primary residence)
  • any trust, with total assets in excess of $5 million, not formed specifically to purchase the subject securities, whose purchase is directed by a sophisticated person
  • certain entity with total investments in excess of $5 million, not formed to specifically purchase the subject securities
  • any entity in which all of the equity owners are accredited investors

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