What is an accredited investor?
An accredited investor is an individual or institution that satisfies one of the following requirements:
1. Have an individual net-worth of over $1 million, excluding the primary residence.
2. Have an individual income of over $200,000 over the past two years, and be likely to make a similar amount this year.
3. Be a bank, savings association, or insurance company.
4. Be an investment institution or a broker.
5. Be a business entity with assets exceeding $5 million.
6. Be an entity owned by accredited investors meeting one of the above requirements.
An accredited investor is a person or business entity that is legally allowed to invest in unregistered securities or unregulated institutions such as hedge funds.
This generally means high-income or high net worth individuals (above one million dollars), banks, and other investment companies like trusts and brokers.